Impact of Target Based Costing on Profit Margins at Manufacturing Industry: A Financial Analysis
Year: 2025
Type: article
Abstract: Target-Based Costing (TBC) has emerged as a critical cost management approach in the manufacturing sector, enabling firms to optimize production costs while maintaining competitive pricing and profit margins. This study investigates the impact of TBC on financial performance, focusing on its role in cost control, pricing strategies, and operational efficiency at Manufacturing Industries. Using regression and factor analysis, the research examines key cost drivers, the influence of TBC on production costs, and its role in enhancing sales revenue and market positioning. The findings reveal that TBC significantly contributes to cost optimization, profitability, and competitive advantage. The study provides practical implications for manufacturing firms seeking to adopt TBC to sustain financial stability and market competitiveness. Furthermore, the study highlights challenges in TBC implementation and suggests future research directions to refine cost management strategies in manufacturing. Keywords: Target-Based Costing, Cost Management, Profitability, Competitive Pricing, Operational Efficiency, Manufacturing Industry, Lean Manufacturing, Cost Optimization, Market Strategy
DOI: 10.55041/ijsrem45780
Author: NANDHINI K
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4409769186