The role of ''TARGET COSTING'' in the optimization of company costs: Case of the industrial sector

Le rôle du ‘’TARGET COSTING’’ dans l’optimisation des coûts des entreprises: Cas du secteur industriel

Salim Merjane (), Karima Touili and Reda Houam
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Salim Merjane: Université Hassan 1er [Settat]
Karima Touili: Université Hassan 1er [Settat]
Reda Houam: Université Hassan 1er [Settat]

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Abstract: The company operates in an increasingly unstable environment, marked by intensified competition, globalization, technological changes and accelerated market evolution. In order to cope with this, it must focus on the profitability of its products. This article aims to understand cost management through its methods that help the company to consolidate its growth. Among the management methods, there is the target cost which is a Japanese method whose aim is to reduce costs in the design and planning phases, it allows to study the market, and to gain a profit margin before determining the product costs. This instrument comes to optimize the costs of the product component, the Target Costing is an important element to manage its cycle. Unlike the old methods that are based on reducing costs in the final stages, what companies achieve the desired margin and can sometimes achieve a loss. The purpose of this article is to implement the Target Costing method for a good cost management in the face of an exacerbated environment. To answer our problem, the implementation of Target Costing is tested with the help of a qualitative study via semi-directive interview guides of two industrial companies located in the region CASA - SETTAT.

Keywords: Target Costing; cost optimization; industrial sector; profitability; unstable environment; competition; globalization; technological changes; market evolution; cost management; design and planning phases; market study; profit margin; product costs; product component; cycle management; old cost reduction methods; desired margin; loss prevention; qualitative study; semi-directive interviews; industrial companies; CASA - SETTAT region.; Le rôle du ''TARGET COSTING'' dans l'optimisation des coûts des entreprises : Cas du secteur industriel Target Cost Customer Satisfaction Profit Margin Variance Selling Price Value Analysis; Le rôle du ''TARGET COSTING'' dans l'optimisation des coûts des entreprises : Cas du secteur industriel Target Cost; Customer Satisfaction; Profit Margin; Variance; Selling Price; Value Analysis; gestion des coûts; entreprise; rentabilité; méthode japonaise; coût cible; optimisation des coûts; conception; planification; marché; marge bénéficiaire; composant du produit; cycle; réduction des coûts; marge souhaitée; perte; implantation; environnement concurrentiel; mondialisation; changements technologiques; marché industriel; étude qualitative; entreprise industrielle; CASA - SETTAT; guides d'entretien semi-directifs.; Coût Cible; Satisfaction des Clients; Marge Bénéficiaire; Ecart; Prix de Vente; Analyse de la valeur. (search for similar items in EconPapers)
Date: 2023-02-01
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Published in International Journal of Advanced Research in Innovation, Management & Social Sciences (IJARIMSS), 2023, 6, ⟨10.57109/15⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04215731

DOI: 10.57109/15

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