Akademik Veri Yönetim Sistemi
İşletme Araştırmaları Dergisi, cilt.12, sa.2, ss.1308-1321, 2020 (Hakemli Dergi)
Purpose – Target Costing is implemented in product design and development phases, and henceaims at cost reduction at the first stage of the life-cycle. This method is primarily intended to enableenterprises to seize their desired profit margin on top of the product cost and determine a price thatcorresponds to what customers are willing to pay. This purpose of this study is to examine the targetcosting method and attempts to determine the extent to which it is implemented in the Turkishfurniture industry.Design/methodology/approach – This study examines the extent to which target costing isimplemented at the enterprises affiliated with the Turkish Furniture Industrialists’ Association andthe competencies related with the implementation principles of target costing. It thereforedetermines the extent to which target costing is implemented in the Turkish furniture industry. Theenterprises within this study are selected from furniture industry. So Turkish FurnitureIndustrialists’ Association is selected because of reflecting furniture companies the best.Findings – Majority of the enterprises implementing target costing stated it helped address customerrequirements and reduce costs. They will be able to utilize the method as a significant tool forcompetitive advantage if they follow target costing principles more diligently. Enterprises notimplementing it, on the other hand, are observed to be internally following the principles of themethod in general terms. Its implementation will be successful if the senior management assumesan active role for its organization-wide ownership.Discussion – The findings obtained from the study are of great importance for the enterprises whichwant to calculate the unit costs related to the products correctly. But, majority of the enterprises inthe furniture industry are observed to be employing traditional cost management systems in settingthe selling price. Enterprises should leave traditional methods behind and opt for the methods oftarget costing including market research to provide products at the selling price that is desired bythe customers.