Research On Cost Control Of Small And Medium-Sized Manufacturing Enterprises Under Target Costing

With the integration of the world economy and the constant improvement of China’s market economy system, the range of enterprise competition is becoming wider and wider. Only by creating superior quality products and establishing competitive cost advantage can China’s small and medium-sized manufacturing enterprises survive and develop in the fierce global competition. Over the years, China’s macroeconomic environment has undergone a lot of changes, such as the disappearance of the demographic dividend and land bonus, the adjustment of export tax rebate policy, and the construction of ecological civilization, so that the Component Cost Advantage based on by the small and medium-sized enterprises gradually disappears. In order to meet the challenges of the world domestic small and medium-sized manufacturing enterprises must continuously develop new products and upgrade the old. However, the vast majority of them are lack of awareness of the Product Life Cycle Cost Management. As a result, they hardly can establish a systematic advantage and lasting competitiveness, leading to the high cost of the new products the weak competitiveness of the old. So it is very difficult to build their core competitiveness. A prominent feature of Target Costing is to enable enterprises to achieve strategic control of cost. The connotation of the current enterprise Product Cost Control not only refers to the product manufacturing stage, but also includes the design, purchase and other stages of cost control. The competition mode between enterprises gradually becomes the competition between supply chains. Under this background, cost control cannot just be implemented in the enterprise itself, but also covers the upstream suppliers and downstream distributors, which builds a Whole Industry Chain Cooperation Cost Control Mode. Besides, they can also look for the cost minimization of the product life cycle from the balance of the cost-effectiveness.Target Costing is the object of study in this thesis, which systematically explains and analyzes the Target Costing Management theory and methods, combs the development history of Target Costing both at home and abroad, and structures a Target Cost Control System based on the product life cycle. This thesis takes TX Enterprise, a representative of small and medium-sized manufacturing enterprises as an example. Through the detailed analysis of the problems encountered in the production and management, and also analysis of the process and effect of the implementation of target costing in TX, the thesis reveals deeply the contribution and value of Target Costing to small and medium-sized manufacturing enterprises. Also, through analysis and evaluation, experience and shortcomings of TX has been found. The thesis states the problems and countermeasures that should be paid attention to in the implementation of target costing, and hope to be able to provide a useful reference for China’s small and medium-sized manufacturing cost management.