Open AccessTarget costing
Author(s) -
Sanailton De Lima Dias,
Francisco Tavares Filho,
André Luís Korzenowski,
Moisés Ozório de Souza Neto,
Rafael Ramón Fonseca Rodrigues
Publication year - 2021
Language(s) - English
Resource type - Journals
ISSN - 2411-2933
DOI - 10.31686/ijier.vol9.iss11.3542
Subject(s) - activity based costing , profitability index , productivity , bidding , control (management) , process (computing) , business , cost accounting , business process , process management , computer science , marketing , economics , finance , accounting , artificial intelligence , work in process , macroeconomics , operating system
The implementation of a cost control system in construction companies contributes to reducing resource losses in the production process and increasing business productivity and profitability, especially when it comes to small business, which normally do not have a planning system and efficient control. Therefore, this article aims to propose a target costing model for a small construction business, concerning the efficient evaluation of its costs for the maximization of profits in proposals to provide services to public entities. A case study is used, in which data collection occurred through a questionnaire, observations of the process of preparing financial proposals, other unstructured questions, and documentary search, whose approach includes descriptive and qualitative research. The survey results revealed that the enterprise has a cost control system, but is technologically backward. Besides, the enterprise already intuitively used the concepts of target cost in preparing budgets. After evaluating the costs, a target costing model was suggested for the enterprise to use as a parameter in the bidding processes, however, it was not implemented due to the current unfavorable conditions.