Conceptual framework of implementing strategic cost management and reducing costs through target costing system

Abstract EN

Strategic cost management represents a respond to the need of organization to cope with changes in modern business environment.

Target costing is one of the most important strategic cost management tools, which enables through it organizations to adopt cost reducing strategy which is considered to be a strategic choice that can be implemented, in order to gain competitive advantages over rivals in the marketplace.

This paper research aims to identify the concept of target costing system along with its contribution in managing and reducing cost, as well as shed light on the basic pillars of strategic cost management and its importance in the current business environment.