Requirements for Applying the Target Cost of Manufacturing the Product during the Design Phase And its Role in Making Pricing Decisions

Abstract

The current research aims to show the role of the target cost method in determining the price, as this method is one of the new methods that can be used in pricing industrial products depending on the market entrance, with emphasis on quality and obtaining customer satisfaction and ensuring their loyalty to the economic unit and their desire for their products, and the importance of research comes from The role played by the target cost method in the field of reducing the costs of industrial products through the application of procedural, engineering and cost steps to arrive at an accurate measurement of the total cost of the target product, which is in the design, where basic steps are identified that affect the cost of We consequently result in its pricing decisions, just as the target cost method is one of the appropriate methods that aims to reduce the cost while improving quality and time and thus a reduction in price and then the economic unit occupies its real position in the local markets and launch towards the global markets in the future, and research has been applied in the company General for Textile Industries because there is a desire before the technical management and workers in the company to apply modern methods, including the target cost method in order to increase the effectiveness of measuring the cost of the product, and this contributes to taking appropriate pricing decisions and then reviewing this For decisions and their future development, and finally, the research reached a set of conclusions and recommendations that clarify the role of the target cost method in making pricing decisions.