Researches On Target Cost Management Its Application In Government Project

Target costing (TC) is the subject of this article. The author proposed a new solution to the problems exist in the cost management of investment projects held by government. To adopt new idea of Target costing being believed truly efficient for current situation of the governmental investment projects which have been posed many questions and problems.First of all, the author analyzed what kind of management methods are implementing with the cost control of governmental investment projects at the present time, as well as the problems caused by this application.Secondly, the concept, functions, and differences of the Target costing have been compared with the classic cost management system. Hereby, the applicable scope was stated properly and the advantage and superiority of adopting the Target costing is significant.Further more, the necessity and the feasibility of applying the Target costing system to the governmental investment projects have been demonstrated to be necessary and feasible from the macroscopic dimension.Finally, combining the business administration methods of WBS, Earned Value Cost Control, the workflow chart design and the Target costing will provide one kind of new model pattern and rational thought to the governmental investment projects.