IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2017-02-20.html
   My bibliography  Save this article

Innovation of a Technological Product with Utilizing the Target Costing Methodology

Author

Listed:
  • Marek Potkány

    (Faculty of Wood Sciences and Technology, Technical University in Zvolen, T.G. Masaryka 24, 96053 Zvolen, Slovakia,)

  • Petr Novák

    (Faculty of Management and Economics, Tomas Bata University in Zlin, Mostní 5139, 76001 Zlín, Czech Republic,)

  • Róbert Kovác

    (Faculty of Economics and Administration, University of Pardubice, Studentská 95, 53210 Pardubice 2, Czech Republic.)

  • Miloš Hitka

    (Faculty of Wood Sciences and Technology, Technical University in Zvolen, T.G. Masaryka 24, 96053 Zvolen, Slovakia,)

Abstract

The modern business environment is characterized by high competitiveness. If an enterprise wishes to maintain a competitive edge and hang on to clients, it is very important to engage in innovative activities, even if there is no real justification for doing so. Such innovation in the business environment and cost structure is additionally a catalyst for change in cost management. Gradually, costs begin to be seen from a strategic perspective and planning is undertaken in the preproduction phase, as a consequence of this stage creating the greatest impact on any future success of a product. Varying perceptions of costs and the behavior pertaining to them also necessitates that adequate tools are developed for their strategic management, e.g., target costing. The aim of this paper is to present the upgrade of an electronic item - a sports light-emitting diode display, adapting it to be compatible with external devices running the Android operating system, in accordance with cost projection applied via the target costing methodology. Doing a target costing calculation through the procedure proposed allows for functional differentiation of the given product, specifically to satisfy the requirements of potential customers at an acceptable market price.

Suggested Citation

  • Marek Potkány & Petr Novák & Róbert Kovác & Miloš Hitka, 2017. "Innovation of a Technological Product with Utilizing the Target Costing Methodology," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 130-137.
  • Handle: RePEc:eco:journ3:2017-02-20
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/irmm/article/download/4026/pdf
    Download Restriction: no

    File URL: http://www.econjournals.com/index.php/irmm/article/view/4026/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaroslav Belás & Yuriy Bilan & Valér Demjan & Juraj Sipko, 2015. "Entrepreneurship in SME Segment: Case Study from the Czech Republic and Slovakia," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 308-308, February.
    2. 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.
    3. Andrea Olsovska & Ladislav Mura & Marek Svec, 2016. "Personnel Management In Slovakia: An Explanation Of The Latent Issues," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(2), pages 110-120, June.
    4. Dudin, Mikhail Nikolaevich & Lyasnikov, Nikolaj Vasil'evich & Dzhurabaeva, Gulnora Kahramanovna & Dzhurabaev, Kahraman Tursunovich, 2015. "Economic and mathematical modeling of the costs of production in industrial enterprises," Published Papers d153, Russian Presidential Academy of National Economy and Public Administration.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ionica Oncioiu & Sorinel Căpuşneanu & Dan Ioan Topor & Ana Maria Ifrim & Ramona Camelia Silvestru & Monica Ioana Toader, 2021. "Improving Business Processes in a Construction Project and Increasing Performance by Using Target Costing," SAGE Open, , vol. 11(1), pages 21582440219, February.
    2. Eva Koisova & Jozef Habanik & Zuzana Virglerova & Zoltan Rozsa, 2017. "SMEs Financing as an Important Factor of Business Environment in Slovak Republic Regions," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(2), pages 129-140.
    3. repec:mje:mjejnl:v:12:y:2017:i:2:p:129-140 is not listed on IDEAS
    4. Li, Hongmin & Wang, Yimin & Yin, Rui & Kull, Thomas J. & Choi, Thomas Y., 2012. "Target pricing: Demand-side versus supply-side approaches," International Journal of Production Economics, Elsevier, vol. 136(1), pages 172-184.
    5. Rodney Coyte & Martin Messner & Shan Zhou, 2022. "The revival of zero‐based budgeting: drivers and consequences of firm‐level adoptions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3147-3188, September.
    6. Odysseas Pavlatos & Hara Kostakis, 2022. "Exploring the Relationship between Target Costing Functionality and Product Innovation: The Role of Information Systems," Australian Accounting Review, CPA Australia, vol. 32(1), pages 124-140, March.
    7. Stadtherr, Frank & Wouters, Marc, 2021. "Extending target costing to include targets for R&D costs and production investments for a modular product portfolio—A case study," International Journal of Production Economics, Elsevier, vol. 231(C).
    8. Heinz Ahn & Marcel Clermont & Stephan Schwetschke, 2018. "Research on target costing: past, present and future," Management Review Quarterly, Springer, vol. 68(3), pages 321-354, August.
    9. Aqeel Israr & Norashidah Hashim, 2017. "Effect of Experiential Teaching Methodology on Personality and Entrepreneurial Intentions: A Proposed Framework," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 210-226, November.
    10. Silvia Lorincová, 2018. "Human Resource And Corporate Culture: Gender-Based Differences In The Assessment," Central European Journal of Labour Law and Personnel Management, Labour Law Association, vol. 1(1).
    11. Ofileanu Dimi & Bumbescu Sorina Simona, 2014. "Target Costing – The Response Of The Managerial Accounting To Changes In The Environment," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 45-55, June.
    12. Dorota Kostrzewa-Nowak & Waldemar Gos, 2022. "Practical Applications of Target Costing in a Multidisciplinary R&D Project," Sustainability, MDPI, vol. 15(1), pages 1-13, December.
    13. Gopalakrishnan, Mohan & Libby, Theresa & Samuels, Janet A. & Swenson, Dan, 2015. "The effect of cost goal specificity and new product development process on cost reduction performance," Accounting, Organizations and Society, Elsevier, vol. 42(C), pages 1-11.
    14. Suzuki, Taku & Mizobata, Satoshi, 2019. "Social Confusion and Corruption: Investigating the Causes and Effects of a Breakdown of Ethics," Discussion Paper Series 690, Institute of Economic Research, Hitotsubashi University.
    15. Sorin-Romulus Berinde & Laura-Maria Herța, 2021. "Performance Improvements for Romanian SMEs and Their Predictors," Sustainability, MDPI, vol. 13(15), pages 1-13, July.
    16. Gonçalves, Tiago & Gaio, Cristina & Silva, Mariana, 2018. "Target costing and innovation-exploratory configurations: A comparison of fsQCA, multivariate regression, and variable cluster analysis," Journal of Business Research, Elsevier, vol. 89(C), pages 378-384.
    17. Andrzej Bia³as, 2016. "Cost-Benefits Aspects In Risk Management," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(1), pages 28-39, December.
    18. 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.
    19. Catalina Mitra Crisan & Dan-Cristian Dabija & Vasile Dinu, 2015. "Social Entrepreneurship in Romania: Significance and Models," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 65-77.
    20. Yazdifar, Hassan & Askarany, Davood, 2012. "A comparative study of the adoption and implementation of target costing in the UK, Australia and New Zealand," International Journal of Production Economics, Elsevier, vol. 135(1), pages 382-392.
    21. Jana Žuľová & Ivan Kundrát, 2020. "Service Of Documents In The Context Of Employment During Employee Quarantine," Central European Journal of Labour Law and Personnel Management, Labour Law Association, vol. 3(1).

    More about this item

    Keywords

    Cost Projection; Calculation; Target Costing; Innovation;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2017-02-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.