Pros and Cons for the Implementation of Target Costing Method in Romanian Economic Entities

Sorin Briciu and Sorinel Capusneanu
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Sorin Briciu: “1 Decembrie 1918” University, Alba Iulia, Romania

Journal of Accounting and Management Information Systems, 2013, vol. 12, issue 3, 455-470

Abstract: The article looks at the pros and cons for the implementation of Target Costing method in Romanian household appliances manufacturing entities, based on its specific principle. Based on recent results obtained by experts in this field and taking into account the specific aspects of the Romanian economic entities, among the topic’s pursued objectives we enumerate the following: analysis of critical implementation or non-implementation factors related to the Target Costing method and their impact on a company’s internal and competitive environment. The research has been carried out through the use of quantitative and qualitative methods, but also through the use of theoretical ideas in the making of the case study. Our research design is focused on theoretical and practical approach of implications arising from issues described in the research questions. After analyzing the critical factors of implementation or non-implementation of target costing method, the results obtained through practical case study demonstrates the possibility of adapting and implementing target costing method in the household appliances manufacturing entities in Romania. Authors’ conclusions on this topic highlight the most important arguments for implementing and adapting Target Costing method in Romanian household appliances manufacturing entities, due to its long-term benefits. The benefits of the Target Costing method are reflected by the results of a practical case study conducted in a company acting in this field.

Keywords: Implementation; profit margin; target costs; analysis; management accounting (search for similar items in EconPapers)
JEL-codes: L11 L15 M21 M41 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ami:journl:v:12:y:2013:i:3:p:455-470

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