The Role of Target Cost in Cost Reduction: an Empirical Case of Bazian Cement Factory in Kri

Abstract

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.