The Prospects for Using the Target Costing Concept in Domestic Enterprises

Abstract

The paper focuses on the main features of the Target Costing concept, its differences from the traditional cost accounting system. Also, the authors discuss both advantages and disadvantages with respect to practical applications. The authors state that in current business conditions, characterized by increased competition, increased integration activity, and the digitalization of the economy, only enterprises susceptible to innovation can function effectively. In this regard, the use of the Target Costing methodology, which allows managing costs at all stages of the product life cycle, in authors’ opinion, is mandatory for enterprises seeking to expand their market positions.