YERELİ, Ayşe N. Celal Bayar Üniversitesi - İ İ B F - İşletme Bölümü, Turkey , DOĞAN, Semra Dumlupınar Üniversitesi - İ İ B F - İşletme Bölümü, Turkey , ŞAHİN, Damla Celal Bayar Üniversitesi - İşletme Bölümü, Turkey

Target Costing in Product Development Process

25636

Organizations aimed at saving or increasing market share have to find alternative ways to reduce costs in every step of production. In that sense, target costing is seen as a market and customer oriented costing model. The first object of this study is creating cost parameters for new product development in a large sized Turkish white goods company. Second object is creating an application model to provide cost control through product development process by dividing costs into product components and features. In case study first product costs have been forecasted and then compared with the cost parameters determined before. If the predicted costs exceed the cost parameters alternative ways such as using cost reducing formules in those components whose costs expected to be reduced have to be found to reduce costs. Contrary to that cost increasing methods have been used in those components whose costs expected to be increased. By ths way it has become possible to integrate product features and their costs.

37

target costing , product development , time to marketing

Journal Of Management an‎d Economics

52