Pricing products using the target costing method to enhance the competitiveness of the productive institution (a case study of the TIFIB Foundation in Biskra)

Abstract

This study aims to attempt to price products using the target costing method to enhance the competitiveness of the production institution with a case study of the TIFIB institution in Biskra, relying on the descriptive analytical approach and the case study approach. The study concluded that the institution under study does not apply the total costs method when determining the cost price of its products correctly, as it neglects to bear the costs associated with the product, and that determining the selling price of its products is based on the cost price plus the profit margin, and in this case the institution is selling its products. At a loss, but when the method is corrected, it is possible that the selling price of the product will be higher than the market price. In this case, the organization resorts to reducing prices, and this is reflected in a decrease in its profits, which weakens its competitive ability. As for using the target costing method, it contributed to providing products at the lowest cost while maintaining The required specifications and quality, which enables the organization to provide products at a price that is commensurate with the prevailing prices in the market and the purchasing power of customers and to face price fluctuations with greater flexibility, and this is what enables it to enhance its competitive ability and gain a position in the market.