The Basic Principle Of Target Costing And Case Study

With the gradual maturity of the socialist market economic system , the state-owned enterprises displayed their lack of fitness for the market economy and incurred a large losses. This condition was mainly caused by the poor cost management of the enterprises themselves. Target costing ,as particular modern cost management method which is based on the market and emphasizes the joint efforts of the staff, provided an efficient way for our state-owned enterprises to engage in pursuing long-term cost improvement.The article is composed of five chapters.Chapter One: the theoretical basis and development statusIt gives an introduction for the origin of Target Costing, a study for its theoretical basis, and a brief narration for its development status both in domestic and overseas.Chapter Two: the significance of promoting Target Costing in intensifying cost management of state-owned company.Discussing some problems of cost management exist in the state-owned companies presently, estimating traditional cost management impersonally, furthermore, comparing Target Costing with those traditional methods.Chapter Three: enacting procedures of Target CostingParticular introducing executive procedures of Target Costing by stages, it was separated into three stages, that is, establishment, realization, tracing examination and improvement. And enumerating concrete implementation cases at the same time.Chapter Four: implementation cases of project responsibilities (Target) CostingIntroducing project responsibilities Target Costing briefly, providing concrete cases of implementing project responsibilities (Target) Cost management.Chapter Five: conclusionsThrough analysis and study from the said four chapters, we can get the conclusion that we can achieve great notable effects by executing Target Costing both in product assembly enterprises and in architectural construction enterprises.