Innovation of a Technological Product with Utilizing the Target Costing Methodology


Abstract views: 58 / PDF downloads: 125

Authors

  • Marek Potkány Technical University in Zvolen
  • Petr Novák Tomas Bata University in Zlin
  • Róbert Kováč University of Pardubice
  • MiloÅ¡ Hitka Technical University in Zvolen

Abstract

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, InnovationJEL Classifications: M21, M41, O31

Downloads

Download data is not yet available.

Author Biographies

Marek Potkány, Technical University in Zvolen

Department ob Business Economics

Petr Novák, Tomas Bata University in Zlin

Faculty of Management and Economics

Róbert Kováč, University of Pardubice

Faculty of Economics and Administration

Miloš Hitka, Technical University in Zvolen

Department ob Business Economics

Downloads

Published

2017-03-25

How to Cite

Potkány, M., Novák, P., Kováč, R., & Hitka, M. (2017). Innovation of a Technological Product with Utilizing the Target Costing Methodology. International Review of Management and Marketing, 7(2), 130–137. Retrieved from https://econjournals.com/index.php/irmm/article/view/4026

Issue

Section

Articles

Most read articles by the same author(s)