TARGET COSTING (TC) SYSTEM AND ITS UNCONTROLLABLE FACTORS: A CASE STUDY FROM EGYPT

Karim Abbas
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Karim Abbas: Modern University for Technology and Information (MTI) Faculty of Management

Annals of University of Craiova - Economic Sciences Series, 2015, vol. 2, issue 43, 366-374

Abstract: The present investigation aims to state uncontrollable factors which affect applying Target Costing (TC) system in Egyptian case. The study used the quantitative method to describe and analyze the data and results of applying this system in a company for industrializing the vehicles (Shahin 1400CC) at Cairo. The study illustrated that the greatest part of cost Shahin 1400CC is the value of the imported components as it is controlled by the state that has the license (i.e. the parent company) . As well as the changes in the exchange rate (American dollar vs. Egyptian pound). The cost value of uncontrollable factors(4 factors) represent more than 60% of total cost of all factors (15 factors).The uncontrollable factors were foreign exchange rate, general and administrative costs, taxes and commission which represent (4/15) 26.67% of total factors (Controllable and uncontrollable factors).

Keywords: Target Costing system; Manufacturing; Egyptian firms; Al Nasr Company for industrializing the vehicles; Uncontrollable Factors (search for similar items in EconPapers)
JEL-codes: M41 M42 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:2:y:2015:i:43:p:366-374

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