Application of Target Costing and Value Engineering in Pricing Postgraduate Course

Abstract

This study investigated the impact of applying the Target Costing and Value Engineering in the pricing of a postgraduate course in the broad sense. The methodology in this research is descriptive nature of this survey type and the instrument for data collection was a questionnaire, were also conducted interviews with directors and coordinators of HEI, also analysis of cost spreadsheets course graduate. As the approach is characterized as quantitative, data were collected in November 2009. The populations is composed of 298 students, 165 valid respondents. The survey does not seek to identify the cost methodology employed by the HEI, but to use the methodology of Target Costing, together with Value Engineering as a tool to analyze the costs of post-graduate course and to verify the possibility of achieving the price designed by consuming public. Among the findings revealed that the reduction of some costs could bring the price of the course according to market needs.