The effect of target cost in enhancing competitive advantages



  • M. H. Ali uruk
  • A.M. Obaid

The research aims to apply the target cost technology in one of the factories of the Rubber
and Tire Industries Company, Babylon Tire Factory, where this technology is considered one of the most
important strategic cost management techniques, and its application leads to achieving the goal of the
economic unit in reducing costs and increasing productivity, and to achieve this goal the researcher relied
on data Economic unit research sample through personal interviews and field visits for the purpose of
applying TC technology. A set of conclusions was reached, the most important of which are: The target
cost technique is one of the important techniques whose work focuses on reducing costs during the life
cycle of the product, especially in the planning, research, development and design phase without affecting
the quality of product, this research helps in determining the competitive costs of products through
Determining the target costs in the market and comparing them with the actual (current) costs and
analyzing the costs gap to reach the competitive costs. Important notes pay attention to the main success
factors, which represent cost, quality and time, Developing the economic unit in question or replacing it
with the machinery and equipment of the Babel Tire Factory in order to compete with the products of
other competing units by reducing costs.


Target cost competitive advantage

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Ali, M. H. ., & Obaid, A. . (2022). The effect of target cost in enhancing competitive advantages. Journal Port Science Research, 4(4), 279–303.


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