Innovation of a Technological Product with Utilizing the Target Costing Methodology
The modern business environment is characterized by high competitiveness. If an enterprise wishes to maintain a competitive edge and hang on to clients, it is very important to engage in innovative activities, even if there is no real justification for doing so. Such innovation in the business envi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-03-01
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| Series: | International Review of Management and Marketing |
| Online Access: | https://econjournals.com/index.php/irmm/article/view/4026 |
| _version_ | 1797911700005978112 |
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| author | Marek Potkány Petr Novák Róbert KovÃ¡Ä MiloÅ¡ Hitka |
| author_facet | Marek Potkány Petr Novák Róbert KovÃ¡Ä MiloÅ¡ Hitka |
| author_sort | Marek Potkány |
| collection | DOAJ |
| description |
The modern business environment is characterized by high competitiveness. If an enterprise wishes to maintain a competitive edge and hang on to clients, it is very important to engage in innovative activities, even if there is no real justification for doing so. Such innovation in the business environment and cost structure is additionally a catalyst for change in cost management. Gradually, costs begin to be seen from a strategic perspective and planning is undertaken in the preproduction phase, as a consequence of this stage creating the greatest impact on any future success of a product. Varying perceptions of costs and the behavior pertaining to them also necessitates that adequate tools are developed for their strategic management, e.g. target costing. The aim of this paper is to present the upgrade of an electronic item - a sports LED display, adapting it to be compatible with external devices running the Android operating system, in accordance with cost projection applied via the target costing methodology. Doing a target costing calculation through the procedure proposed allows for functional differentiation of the given product, specifically to satisfy the requirements of potential customers at an acceptable market price.
Keywords: Cost Projection, Calculation, Target Costing, Innovation
JEL Classifications: M21, M41, O31
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| first_indexed | 2024-04-10T11:44:50Z |
| format | Article |
| id | doaj.art-2beb54060d664f2e8a28bafe69377eee |
| institution | Directory Open Access Journal |
| issn | 2146-4405 |
| language | English |
| last_indexed | 2024-04-10T11:44:50Z |
| publishDate | 2017-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Review of Management and Marketing |
| spelling | doaj.art-2beb54060d664f2e8a28bafe69377eee2023-02-15T16:17:22ZengEconJournalsInternational Review of Management and Marketing2146-44052017-03-0172Innovation of a Technological Product with Utilizing the Target Costing MethodologyMarek Potkány0Petr Novák1Róbert KováÄ2MiloÅ¡ Hitka3Technical University in ZvolenTomas Bata University in ZlinUniversity of PardubiceTechnical University in Zvolen The modern business environment is characterized by high competitiveness. If an enterprise wishes to maintain a competitive edge and hang on to clients, it is very important to engage in innovative activities, even if there is no real justification for doing so. Such innovation in the business environment and cost structure is additionally a catalyst for change in cost management. Gradually, costs begin to be seen from a strategic perspective and planning is undertaken in the preproduction phase, as a consequence of this stage creating the greatest impact on any future success of a product. Varying perceptions of costs and the behavior pertaining to them also necessitates that adequate tools are developed for their strategic management, e.g. target costing. The aim of this paper is to present the upgrade of an electronic item - a sports LED display, adapting it to be compatible with external devices running the Android operating system, in accordance with cost projection applied via the target costing methodology. Doing a target costing calculation through the procedure proposed allows for functional differentiation of the given product, specifically to satisfy the requirements of potential customers at an acceptable market price. Keywords: Cost Projection, Calculation, Target Costing, Innovation JEL Classifications: M21, M41, O31 https://econjournals.com/index.php/irmm/article/view/4026 |
| spellingShingle | Marek Potkány Petr Novák Róbert KovÃ¡Ä MiloÅ¡ Hitka Innovation of a Technological Product with Utilizing the Target Costing Methodology International Review of Management and Marketing |
| title | Innovation of a Technological Product with Utilizing the Target Costing Methodology |
| title_full | Innovation of a Technological Product with Utilizing the Target Costing Methodology |
| title_fullStr | Innovation of a Technological Product with Utilizing the Target Costing Methodology |
| title_full_unstemmed | Innovation of a Technological Product with Utilizing the Target Costing Methodology |
| title_short | Innovation of a Technological Product with Utilizing the Target Costing Methodology |
| title_sort | innovation of a technological product with utilizing the target costing methodology |
| url | https://econjournals.com/index.php/irmm/article/view/4026 |
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