Cost Reduction
2 articles filed under this keyword.
The Impact of Applying Target Cost Technology on Cost Reduction in Industrial Companies
Salih Rasool Agala
This study aims to examine the role of target costing technique implementation on cost reduction from the perspective of employees in several industrial companies. The descriptive analytical approach was adopted to establish the theoretical framework. The researcher utilized a questionnaire survey as a data and information collection tool. The research sample consisted of 70 participants representing employees from 4 industrial companies in Sulaymaniyah Governorate, where 64 employees from the selected companies successfully completed the questionnaires. SPSS software and Microsoft Excel were employed to conduct the required statistical analyses to determine frequencies, arithmetic means, standard deviations, and correlation relationship tests. The study results yielded several conclusions, most notably the existence of a statistically significant correlation and impact at the level (α = 0.05) between the target costing variable and the cost reduction variable. The study reaches several recommendations, primarily that through implementing target costing technique, other innovative and novel techniques can be developed that contribute to cost reduction without affecting product quality. Additionally, there is a necessity to provide adequate training for employees in industrial companies across all departments, which contributes to enhancing their ability to determine target costs and monitor performance effectively.
Volume 9 · Issue 4 · September 2022The Role of Target Cost in Cost Reduction: an Empirical Case of Bazian Cement Factory in Kri
Araz Mohammed Mahmood, Kanar Kamal Salih, Bzhar Nasradeen Majeed
Recently corporations attempt to make a fair competition in global markets, which apply different techniques and tactics to raise their industrial outputs with lower costs and it is enhancing companies' profitability. Implementation of target costing is employed in design of products and development phases, therefore purposes at reduction costs at the first stage of the life-cycle. The enterprises might be supported by a considerable technique for seizing the highest of profit margin of the product cost and regulate prices so it is vital tool for competitive advantage. Basically, the main purpose of this study is to examine the impact of implying target costing on reduction costs in Bazian Cement Factory in the Kurdistan region of Iraq. This study collected primary data through the survey and distributed 25 forms among the participants of the sample of the study. The findings of the study indicated that dependent variable (reduction costs) and independent variable (target costing) have a strong and positive link together, this means Bazian Cement Factory is successful in using target cost strategy.