Use of target costing and the forecasting as tool of strategically cost management in the concrete industry: A case study

Abstract

The incited competitiveness fortified by globalization, allied the existence of different cost systems has guided the companies to pay more attention on pricing. The objective of the present study is to relate target costing with forecasting, showing the impacts that a system of target costing suffers when it has problem in the forecast. The search of the answers to the problem was given by an exploratory study that has the purpose to evidence the use of target costing and of the forecasting for cost management. The procedure of this study is a case study, with qualitative boarding. It is verified that this article has demonstrated the possibility of cost reduction based on a target costing system. However, it must have a good forecast to the target costing works better, because, if the forecast is bad-done, all the system will enter on collapse. Therefore it was possible to verify that these two cost systems, target costing and real cost, can go together on the company and, the results will be optimized by the junction of them. E, with this, the company will have a bigger competitiveness in the market in which it is inserted.