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Extent of Implementing Target Costing and Value Engineering Approach to Reducing Costs: A Survey in Jordanian Shareholding Companies for Food Industries

Author

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  • Suleiman El-Dalahmeh

Abstract

This Study aims at identifying the extent of implementing Target Costing and Value Engineering approach to reducing costs of Jordanian public shareholding companies for food industries. To achieve the study objectives, the researcher distributed personally a questionnaire to a random sample of (145) accountants in the Hashemite kingdom of Jordan. (100) questionnaires were returned. The response rate was 69%. In addition, the survey sought to verify the five basic hypothesis of the study. In order to analysis the data, the researcher used means, standard deviations and T-test. The results of the survey revealed that availability of the components of application of target cost, as well as companies have awareness, concepts, principles and the importance of applying target costs to managing costs so as to improve profitability, and the companies are using value engineering to achieve a cost to reach the target costs. The results also showed that there were some difficulties to hinder the application of target costs and value engineering in Jordanian shareholding companies for food industries. The most important difficulties were- The lack of sufficient knowledge to manage the company on how to implement the target cost and value engineering. The lack of research and publication related to the benefits target cost and value engineering. Application costs greater than the expected benefits.

Suggested Citation

  • Suleiman El-Dalahmeh, 2018. "Extent of Implementing Target Costing and Value Engineering Approach to Reducing Costs: A Survey in Jordanian Shareholding Companies for Food Industries," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 10(1), pages 390406-3904, December.
    • Handle: RePEc:mth:ajfa88:v:10:y:2018:i:1:p:390406
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    References listed on IDEAS

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    1. Ibusuki, Ugo & Kaminski, Paulo Carlos, 2007. "Product development process with focus on value engineering and target-costing: A case study in an automotive company," International Journal of Production Economics, Elsevier, vol. 105(2), pages 459-474, February.
    2. Patricia Everaert & Stijn Loosveld & Tom Van Acker & Marijke Schollier & Gerrit Sarens, 2006. "Characteristics of target costing: theoretical and field study perspectives," Qualitative Research in Accounting & Management, Emerald Group Publishing, vol. 3(3), pages 236-263, September.
    3. Patricia Everaert & Stijn Loosveld & Tom Van Acker & Marijke Schollier & Gerrit Sarens, 2006. "Characteristics of target costing: theoretical and field study perspectives," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 3(3), pages 236-263, September.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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