Target Cost Method is Considered as a Model for Calculating Costs in the Production Process

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 5

Year of Publication : 2020

Authors : Ioana Cristina Circa

10.14445/23939125/IJEMS-V7I5P101

How to Cite?

Ioana Cristina Circa, "Target Cost Method is Considered as a Model for Calculating Costs in the Production Process," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 5, pp. 1-4, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I5P101

Abstract:

This article examines a new product development process and how costs are calculated in the production process. The emergence of new products in the competitive market is considered an important issue in ensuring business operations. The undertaking's decision to launch a new product must highlight the cost of the new product and must take into account the estimated cost of producing a product in the design phase. Therefore, production costs and management costs should be analyzed from the design stage and should be maintained throughout the lifetime of the product. The target cost method is considered a tool characterized by the cost management used to calculate the cost of new products in the design phase.

Keywords:

New product development process, target cost method.

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