The Impact of Target Costing System on Enhancing Company’s Performance

Abstract

The aim of this study is to examine the impact of the application of Target Costing technique on performance improvement through using the case study method for one Sudanese manufacturing company (Sinar Sugar Company). The study results indicated that Sinar Sugar Company does not use the Target Costing technique. However, the analysis of company’s archive data using the Target Costing technique may help the company to reduce its production costs and achieve the target costs, thus enabling it to attain the desired profits for the existing products. In addition, the adoption of this technique will provide useful information for controlling and reducing costs for the new products before they produced, which will affect positively the overall company performance.