Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
980680 | Procedia Economics and Finance | 2016 | 5 Pages |
Target costing is one of the most effective methods in cost management. As a useful and efficient management tool, it has a comprehensive approach for managing costs, reducing prime cost of products in the initial stage of product planning and design, and achieving long-term profit. The present study attempts to investigate the use of target costing and its implementation method in Iran. For this purpose, the study has been conducted through the methods of field and library studies. The results suggest that identifying competitive price and customers’ needs, entering the global competition, reducing prime cost of products, motivation and teamwork of the staff, using value engineering and activity-based costing are necessary for the successful implementation of target costing.