A Feasibility Study of Implementing Target Costing System in Porcelain Sanitary-ware Industry (Case Study: Chini Kord Company, Kermanshah)

Authors

  • B. Saeidipour Assistant Professor of Educational Sciences of Payame Noor University, I. R. of Iran Iran
  • F. Dolatyari Department of Management, Payame Noor University, I. R. of IRAN

Keywords:

Chini Kord Company, target costing, market-driven costing, product-level costing, component-level costing

Abstract

Due to importance of costs, profitability, and survival in the competitive market, producing company managers work around the clock to reduce the prices and increase the profits. Target costing is a strategic approach to cost management aiming at promoting competitive potentials of the companies. This research is a grounded-case study studying feasibility of running target costing system in Chini Kord Company, Kermanshah branch which produces hygienic porcelain ware. Through stratified random sampling and Morgan Table, out of an 800 statistical population, a 260 sample size was chosen. To validate the questionnaire, Likret Scale and to analyze the data, inferential and descriptive statistical tools such as mean, variance, standard deviation, T-test, one-way ANOVA, single sample T, and SPSS software were used. The results indicated that running target costing in market-driven level, product-level, component level and net profit margin level was feasible, and all the questions were valid. Moreover, it was proved there is no significant difference between managers, experts, and workers’ opinions on target costing feasibility and all consented on its implementation.

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Published

2013-11-28

How to Cite

Saeidipour, B. ., & Dolatyari, F. . (2013). A Feasibility Study of Implementing Target Costing System in Porcelain Sanitary-ware Industry (Case Study: Chini Kord Company, Kermanshah). Scientific Journal of Pure and Applied Sciences, 2(11), 363-368. Retrieved from http://www.sjournals.com/index.php/sjpas/article/view/959

Issue

Section

Management Science/Operations Research