Target Costing Management For Automobile Industry During Research & Development Period

With continuously development of market economy and integration of world economy, the competition among enterprises in aspect of scope and degree is becoming more and more severe. From long-term point of view, quality and cost advantage is most important way to guarantee to win the competition. Recently cost management has been becoming the researching hot point and core point. With development of product internationalization and brand strategy, the domestic enterprises begin to research and develop new products in order to cope with worldwide challenge, however, due to the laggard cost management for product lifetime, their new product based on a quite high cost, so the enterprises begin to attach more importance on cost management. Furthermore, one of the critical point of target costing management is to realize the strategy of cost management. For the current market economy, enterprises cost management is not only to reduce the cost, but also to achieve cost minimization of lifetime for products via the balance of cost and profit, based on the whole situation of strategic goal and supplying chain.Aiming at the target costing during the period of research and development for automobile industry, this thesis expatiates on the necessity to carry out the target costing in domestic automobile industry. It elaborates and analyzes thoroughly the details and introduces the current status and development of target costing and its related theoretical knowledge. At the same time this thesis also makes an analysis for the application situation of target costing in domestic and overseas enterprises. By the means of analysis and evaluation to target costing during the period of research and development in FAW-Volkswagen Automobile Company Ltd., this thesis put forwards proposals and set up a practical working procedure to implement it, based on the success and deficiency of its application situation. Simultaneously, the author hopes to contribute and be dedicated to improve the target costing management during period of research and development for domestic manufacturers.