Target Costing and Its Impact on Business Strategy

Abstract

This chapter highlights aspects of the contribution of an IT program used in cost accounting and its management according to the target costing (TC) and its impact on the business strategy of an economic entity. The authors present the historical evolution of the TC, its implementation steps, and the methodological steps that go into the management accounting. The characteristics of a software program specifically designed for cost accounting and management of TC, its design, implementation stages, execution mode, are presented. The guarantee of a managerial decision is based on the provision of real, accurate, and reliable information that can be obtained and analyzed with this software program. The theoretical and methodological aspects presented are based on the existing literature, university studies, and specialty from all over the world. Through the authors' contribution, a new conceptual-empirical framework is created to discuss issues that impact on the business environment of economic entities.