scholarly journals Application of Target Costing method in the Hospitality Industry

2020 ◽  
Vol 5 (2) ◽  
pp. 154-165
Author(s):  
Andor Pajrok
Keyword(s):  
Cost Reduction ◽  
Hospitality Industry ◽  
Cost Management ◽  
Selling Price ◽  
Target Costing ◽  
Sales Price ◽  
Target Cost ◽  
Target Cost Management ◽  
The Cost ◽  
Traditional Approaches

Traditional approaches to managing costs are based on the costs that are the result of existing capabilities and resources in the company. Adding to these costs a specified margin or profit, leads to the sales price. If the market is not ready to accept such a selling price, managers need to find opportunities for rationalization and cost reduction. Target cost management begins the process of managing the sales price and the planned profit that the market can accept, and only then is it possible to determine the cost of the product. In the planning phase of the product and the manufacturing process the approach is to finding a method to lower costs and to reduce them as much as possible. The aim this of study is to investigate the application of target (strategy) cost accounting methods in the Hospitality Industry.

scholarly journals TARGET COST SYSTEM IN STEVEDORING: IMPLEMENTATION PROBLEMS

2018 ◽  
pp. 94-106
Author(s):  
Elmira Kamilbekovna Salakhova
Keyword(s):  
Consumer Preferences ◽  
Cost Management ◽  
Operating Time ◽  
Market Price ◽  
Target Costing ◽  
Management Tools ◽  
Target Cost ◽  
The World ◽  
Target Cost Management

N the world practice there has been accumulated the significant positive experience on application of the target cost management system (target-costing) focused on developing the product cost, taking into account the industry average of the profit and market price. Russian companies also need to take advantages of the technology of managing the production cost of demanded goods and services at affordable prices. Target costs make a part of the organization's costs of product manufacturing, which must be adjusted without compromising quality, according to the price requirements and consumer preferences. The use of a targeted approach is possible not only for the cost management of the new, developed product, but also for traditionally produced, existing “old” product, for the purpose of its price actualization to the consumer needs. Russia's integration into the world system of distribution of goods and other material resources puts certain requirements to the state of the sea port economy and the port organizational and technical level, to the quality of stevedoring and other services. According to experts, commercial and transport vessels spend almost half of their operating time in Russian seaports, the efficiency of which depends on the volume and flexibility of cargo transportation. Tariffs and quality of services rendered are of great importance for carriers - consumers of stevedoring services. Application of the target costs system in the RF port economy is a very popular innovative management technology. The data on the Astrakhan sea port operation during 2014-2017 have been analyzed, which revealed the need to use target-costing in stevedore services management. Methodological and organizational approaches to the identification, assessment and optimization of target costs for stevedoring services are aimed at improving the efficiency of the seaport and at expanding the practice of using modern accounting management tools.

Strategic Cost Management in the Supply Chain

2020 ◽  
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Return On Investment ◽  
Cost Management ◽  
Strategic Cost Management ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Definition Of ◽  
The Cost

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.

A longitudinal case study of target cost management implementation at a shipbuilding company

2013 ◽  
Vol 9 (4) ◽  
pp. 448-470 ◽  
Author(s):  
Kenji Yasukata ◽  
Eisuke Yoshida ◽  
Ichiro Yamada ◽  
Keisuke Oura
Keyword(s):  
Cost Management ◽  
Longitudinal Case Study ◽  
Target Cost ◽  
Target Cost Management

Target cost management in Japanese companies: current state of the art

1994 ◽  
Vol 5 (1) ◽  
pp. 67-81 ◽  
Author(s):  
Takeyuki Tani ◽  
Hiroshi Okano ◽  
Nobumasa Shimizu ◽  
Yoshihide Iwabuchi ◽  
Junji Fukuda ◽  
...  
Keyword(s):  
State Of The Art ◽  
Cost Management ◽  
Current State ◽  
Target Cost ◽  
Target Cost Management ◽  
Japanese Companies

Managerial Systems, Methods, and Techniques Used in Scheduling Industrial Production

2012 ◽  
pp. 345-369 ◽  
Author(s):  
I. C. Dima ◽  
Mariana Man
Keyword(s):  
Expert System ◽  
Industrial Production ◽  
Management System ◽  
Production Management ◽  
Cost Management ◽  
Rule Base ◽  
Marginal Costs ◽  
Target Cost ◽  
Cost Management System ◽  
Target Cost Management

The management of the industrial production implies the use of some management systems and methods that take into account the nature of production, production type, production volume, the way of organising its performance, etc. Normally, the following can be used: cost objective management system; managerial cost management system; target cost management system; expert systems used in industrial production management. Within these systems and methods of management, the main issue is to compare the estimated costs with the target costs. The process of implementing the management system based on the costs is complex and implies: establishing the objectives, breaking down the objectives set by responsibilities, regularly analysing the results obtained, changing the objectives regarding the level of costs should it be needed, etc. The costs corresponding to the last batch, margins of production added or subtracted from the previous volume of costs are the marginal costs that differ from the average costs which concern the entire production of the industrial company. The size of the marginal cost may be established as a total differential cost or as a unitary differential cost, both being in mutual inter-conditioning relation. The expert system in the operational management of production can be used with good results, which is based on comparing some specific facts to those in the databases. Any expert system takes into account the existence of several modules, such as the knowledge base, rule base, knowledge purchase module, inference engine, inference mechanism, etc.

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