Application of Target Costing and Performance Analysis: Evidence from Indian Automobile Industry

N Narsaiah

doi:10.32602/jafas.2020.022

Abstract

Application of Target Costing and Performance Analysis: Evidence from Indian Automobile Industry

Highlights

Business environment twisted through the transformation, globalization and exploitation of competence and scenario controlled over the product operation’s life cycle of the companies
While the negative relationship revealed with the Un standardized Coefficient of β value with the Target costing to the Margin from Operation; Return on Assets (ROA); Net Tangibility Assets (NTA); Earnings per Share (EPS) and Firm Size by -1.000; -5.642; 2.855; -1.830 and -4.702 respectively and p-value shown by 0.000 for the concerned of all the research independent variables, the negative relationship amongst Target costing and independent variables results confirm that the multiple regression results statistically insignificant with such variables
Target costing application for automobile companies is deliberate as the modern approach to shrink strategic costs that facilitate to the development of companies and achieve equivalent benefits over the competitors in market

Summary

Introduction

Business environment twisted through the transformation, globalization and exploitation of competence and scenario controlled over the product operation’s life cycle of the companies. Traditional costing methods are inadequate to obtain accurate cost information for encounter the competition and sustain development of the organization. In the direction of achieve the goals of the business require accurate cost information and appropriate cost management are vital elements to become successful business enterprise and to avoid the augmented competition of business organizations. Modern methods of cost accounting techniques comprise of progressive and exploratory approach to reduce cost of production and operation cost. Cost accounting keeps on established various modern methods, beyond which one of the significant cost accounting techniques is Target Costing (TC)

Objectives

Methods

Findings

Discussion

Conclusion