Target Costing as a Production Cost Control Tool

Abstract

The objective of this research was to examine how target costing was used as a tool for controlling production costs. This study was a literature review conducted using the systematic literature review (SLR) method, incorporating previous research from Google Scholar. Based on the findings of the reviewed and analyzed articles, it was evident that target costing could enhance cost efficiency in production, aiming to minimize production costs and optimize company profits. Moreover, target costing could also optimize cost efficiency by integrating environmental issues, resulting in environmentally friendly products. However, the use of target costing as a production cost control tool was considered suboptimal due to its limited scope in determining production costs. This research aimed to provide new insights into how target costing could improve cost efficiency in production and its relevance in maintaining environmental sustainability. Additionally, this study was expected to contribute to the development of environmentally friendly production cost control methods.