Qualitative analysis shows improved production costs and profit margins using target costing method.
One of the most important objectives in a company is to obtain accurate accounting information so that decisions can be made, especially in controlling production costs. Target costing is a cost determination approach based on estimated selling prices and profit targets to be achieved from a product. The application of this method is very beneficial for companies because it can help in efficient cost management and support the achievement of expected profits. This study aims to evaluate the effectiveness of production cost control through the use of the target costing method. The research method used is a qualitative descriptive approach. The results of the study indicate that the application of target costing can help businesses control production costs. This is evident from the comparison of production costs before and after the application of the method, namely from Rp27,617,500 to Rp25,230,960. As a result, the company's profit margin increased from 14.36% to 21.76% after the application of the target costing method.
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Wowor et al. (2025) studied this question.
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