The Accounting Impact of Target Cost Approach on the Competitive Advantage on Transformational Manufacturing Companies in Yemen

Abstract

The objective of the study was to show the accounting effect of the target cost input on the competitive advantage. A descriptive approach was used to identify both problems and hypotheses of the study. It was found that the effect of the target cost on the competitive advantage led to an appropriate product that achieved customer satisfaction in terms of competitive price, allowing the strategic direction to focus on a continuous development for a competing product based on financial indicators that emphasize the achievement of a target profit margin. The study recommended that the target cost entry should be used to reduce uncertainty in achieving the target's profits in competitive markets.