Practical Applications of Target Costing in a Multidisciplinary R&D Project

Dorota Kostrzewa-Nowak () and Waldemar Gos
Additional contact information
Dorota Kostrzewa-Nowak: Department of Clinical and Molecular Biochemistry, Pomeranian Medical University in Szczecin, 72 Powstańców Wlkp. Al., 70-111 Szczecin, Poland
Waldemar Gos: Institute of Economics and Finance, University of Szczecin, 64 Mickiewicza St., 71-101 Szczecin, Poland

Sustainability, 2022, vol. 15, issue 1, 1-13

Abstract: R&D requires expertise in the basic sciences, technical and technological knowledge, legal regulations and business, it seems necessary to enhance collaboration between researchers and businesses, especially small and medium-sized enterprises. In this paper, we present a case study of a collaboration between a university and a company in the implementation of R&D projects. The primary research methods used in this study comprised literature analysis, case study analysis, participant observation, direct observation, deductive reasoning, and the authors’ experience with prototype interview design, including telephone interviews (quantitative survey) and interviews with market experts and/or individuals responsible for specific processes in diagnostic and testing laboratories. The calculations presented for studied projects showed a large disproportion between the costs incurred for the production of prototypes and the selling price accepted by the market. However, this does not preclude profitability. Further analysis of the technological processes, materials, components, etc. should be carried out in order to point out the optimization measures and consequently to achieve the target profitability of the product. Conducting R&D works should take into account the task of commercialization. The use of the concept of target costing facilitates the initial assessment of project profitability and should be recommended when conducting R&D, especially at higher stages of technological readiness of the product. Projects involving a higher level of technological readiness should be carried out not only by people representing life sciences, technology, medicine, etc., but also by specialists in social sciences (e.g., accountants and marketing specialists).

Keywords: commercialization; cost calculation; management accounting; prototyping (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/1/124/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/1/124/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2022:i:1:p:124-:d:1010772

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().