The extent of applying the target costing method in the Jordanian industry sector

Abstract EN

This study aims to recognize the extent of applying the target costing method in the Jordanian industry sector, and the suitability of the industrial environment for supporting such a modern concept, in addition to determining the obstacles that come in the way of applying target costing.

To achieve the goals of this study a questionnaire was designed and distributed to financial managers and financial department employees in 10 companies that are listed in the Amman Stock Exchange.

40 questionnaires were distributed and 30 were collected and were featured in this study which makes for a 75% participation rate.

The results of the study showed that companies in Jordan are aware about the concept of target costing however, the companies fail to utilize target costing in a modern, scientific way furthermore this study found that there are obstacles that come in the way of proper implementation of the concept, researchers have also provided many recommendations, some of the most important ones are listed as follows: The need to apply target costing in a scientifically efficient manner, establishing a specialized team to help achieve the goals of target costing, working on having a better environment for the proper operation of target costing and removing the obstacles that might hinder the operation of target costing.