An Analysis of the Application of Target Cost Management in Enterprise Economic Management

Abstract

Target cost management, as an important management method, can optimize the effect of economic management through effective systematic management procedures and structures in enterprise economic management, to strengthen cost control and promote the effective improvement of enterprise management level. The purpose of this paper is to discuss the application of target cost management in enterprise economic management, by analyzing the importance of target cost management, application dilemma, and application strategy, put forward the key points that need to be paid attention to in the implementation of the target cost management, the enterprise should set up an effective goal-setting mechanism, strengthen the cost control and efficiency enhancement, and strengthen the performance evaluation and incentive mechanism, to realize the cost control and efficiency enhancement, and to improve the enterprise's competitiveness and profitability.