THE COST CONTROL BY APPLYING THE TARGET COSTING METHOD IN THE CONSTRUCTION INDUSTRY

Radu Mărginean () and Anamaria ŢEPEŞ Bobescu
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Anamaria ŢEPEŞ Bobescu: "1 December 1918" University of Alba-Iulia

SEA - Practical Application of Science, 2014, issue 3, 348-357

Abstract: The Romanian economic spectrum considered on a slightly increasing trend in the general aspects of the national economy, feels increasingly the need for a development in the cost management issue. One of the modern methods of cost calculation that can fill this gap in the Romanian business practice in management accounting is the target costing method. The overall objective of this case study is to demonstrate the applicability and usefulness of this method in the cost controlling activity, widely used in the field of managerial accounting practice in the developed economies. The financial accounting and the managerial accounting converge in terms of ultimate interest for the company, i.e. value creation and performance increase in a sustainable way. After performing the case study with real financial data, we conclude that the target costing method is applicable and particularly useful in the construction industry and the results may provide support for decision-makers.

Keywords: The target costing method; Managerial acounting; performance; The construction industry (search for similar items in EconPapers)
JEL-codes: D22 L52 M41 (search for similar items in EconPapers)
Date: 2014
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