Explaining the Role Model of Target Costing in Improving the Financial Performance of Food Manufacturing Companies

Document Type : Research

Authors
Hamed Rahat Dahmardeh 1
Behnaz Shahnavazi 2
1 Department of Accounting, Faculty of Humanities, Islamic Azad University, Zahedan, Iran
2 Department of Persian Language and Literature, Khas.C, Islamic Azad university, Khash, Iran.
10.22034/smajournal.2025.532212.1063
Abstract
In today's competitive market, a successful company is one that, relying on customer needs and the capabilities of its employees, provides products and services that, in addition to reducing costs and prices, have high value to the consumer. To achieve these goals, cost management and product quality management systems must be used simultaneously, and target costing is a strategic cost management tool for profit planning and cost reduction. The purpose of the present study is to explain the role model of target costing in improving the financial performance of food manufacturing companies. The present study was conducted using a qualitative method and an exploratory approach. Data collection was conducted through interviews with 12 experts, including accountants and financial managers of food manufacturing companies in Sistan and Baluchestan province. The purposeful and selective sampling method and the research were conducted in 2025. The results of the study show that eight components of market price, customer focus, product design and production process focus, system collaboration (unit interaction), operational and production groups, product life cycle cost reduction, value chain participation, product level, and supplier relationships improve the financial performance of food manufacturing companies.

Keywords

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Strategic Management Accounting
Volume 2, Issue 3
Autumn 2025
Pages 70-86