Impact of Target Costing System on Product Life Cycle Cost Reduction: A Case Study of Yemeni Food Industries

Abstract

The study aims to examine the impact of implementing the target costing system on the product life cycle and explore the relationship between them. The descriptive-analytical approach was employed. The study comes in an introduction, three sections and a conclusion. Section one dealt with target costing as a concept and its significance, stages of implementing the target costing method, and achieving the target cost. Section two proposed an approach to the impact of target costing on reducing product life cycle costs. Section three presented an empirical study. The key findings of the study showed that implementing the target costing system led to a reduction in product life cycle costs and reflected progress in the company's value and reputation. It was also revealed that there was a strong relationship between the implementation of target costing and cost reduction, as target costing contributed to cost reduction in the design, planning, and monitoring stages of the product within the value chain.