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Target Costing (Tc) System And Its Uncontrollable Factors: A Case Study From Egypt

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  • Karim Abbas

    (Modern University for Technology and Information (MTI) Faculty of Management)

Abstract

The present investigation aims to state uncontrollable factors which affect applying Target Costing (TC) system in Egyptian case. The study used the quantitative method to describe and analyze the data and results of applying this system in a company for industrializing the vehicles (Shahin 1400CC) at Cairo. The study illustrated that the greatest part of cost Shahin 1400CC is the value of the imported components as it is controlled by the state that has the license (i.e. the parent company) . As well as the changes in the exchange rate (American dollar vs. Egyptian pound). The cost value of uncontrollable factors(4 factors) represent more than 60% of total cost of all factors (15 factors).The uncontrollable factors were foreign exchange rate, general and administrative costs, taxes and commission which represent (4/15) 26.67% of total factors (Controllable and uncontrollable factors).

Suggested Citation

  • Karim Abbas, 2015. "Target Costing (Tc) System And Its Uncontrollable Factors: A Case Study From Egypt," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(43), pages 366-374.
    • Handle: RePEc:aio:aucsse:v:2:y:2015:i:43:p:366-374
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    File URL: http://feaa.ucv.ro/AUCSSE/0043v2-034.pdf
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    References listed on IDEAS

    as
    1. Ax, Christian & Greve, Jan & Nilsson, Ulf, 2008. "The impact of competition and uncertainty on the adoption of target costing," International Journal of Production Economics, Elsevier, vol. 115(1), pages 92-103, September.
    2. Cooper, Robin & Yoshikawa, Takeo, 1994. "Inter-organizational cost management systems: The case of the Tokyo-Yokohama-Kamakura supplier chain," International Journal of Production Economics, Elsevier, vol. 37(1), pages 51-62, November.
    3. Dekker, Henri & Smidt, Peter, 2003. "A survey of the adoption and use of target costing in Dutch firms," International Journal of Production Economics, Elsevier, vol. 84(3), pages 293-305, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Target Costing system; Manufacturing; Egyptian firms; Al Nasr Company for industrializing the vehicles; Uncontrollable Factors;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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