Concept of target costs in ensuring product competitiveness

Abstract

Purpose: to reveal the essence of the target-costing models as a holistic concept of cost management focused on ensuring the competitiveness of products. Discussion: The cost of production is a complex, complex indicator, in which both the results of the use of resources are reflected in focus. Increasing competition in the modern economy requires a search for reserves to reduce the cost of production, but at the same time increasing its consumer properties. These conditions actualize the use by business entities of the concept of target costs - “target costing”. To reveal the essence of the concept of target costs, it is necessary to find out the causes of its emergence and development, to establish cause-effect relationships. Results: a definition of target cost was formulated, an understanding of the target-costing model as an integrated cost management system, with a focus on the competitiveness of the product, the use value of the product was substantiated; model algorithm is presented in conjunction with other cost management tools in the context of the three phases of the product life cycle.