The Role of The Integration Loop Between Target Costing and The Theory of Constraints in Enhancing Competitive Advantage

Аннотация

Customers have become more knowledgeable and demand high-quality products at reasonable prices. As a result of the intense competition in the business environment, the decline in available resources, and the desire of companies to obtain a larger market share and internal and external growth and expansion, it was necessary to confront the requirements and use efficient and effective tools. This is what contemporary strategic cost management provides. The researchers combined the techniques of product life cycle cost and target cost within an integrated framework within a series of continuous administrative and technical integration rings to support the company's competitive advantage. Among the most important tools used are successive steps to integrate between the product life cycle cost and the procedures for deriving the target cost for men's suits in the ready-made men's clothing factory in Najaf Governorate, and limiting the costs of the men's suit life cycle and reaching the market target cost of (48,000) dinars to support the factory's competitive advantages to achieve the theoretical and procedural research objectives. The researchers concluded that the integration ring between these tools supports and enhances the factory's competitive advantages. One of the most prominent recommendations was the importance of applying contemporary techniques and methods to reduce costs Journal of Social Sciences and Humanities Research Fundamentals 17 https://eipublication.com/index.php/jsshrf 9 Journal of Social Sciences and Humanities Research Fundamentals and improve product quality, in addition to achieving a competitive value that distinguishes them from others competitive advantage in light of the fiercely by creating new competitive advantages for their competitive market. products, both locally and globally. Therefore, the research problem can be formulated with the following question: Are traditional costing systems compatible Keywords: Sustainable target costing, theory of with the competitive environment? Also, can constraints, competitive advantage, and companies' competitive advantage be strengthened by contemporary strategic costing tools. using the integration loop between the product life cycle technology and the target costing technology? 1- Introduction: With the increasing intensity of 2: The Importance of the Research competition in local and global markets, especially The importance of the research stems from the after the opening up of countries' economies to each increasing intensity of competition witnessed by the other, it has become necessary for companies aiming industry at the local and global levels, the need for to survive and continue to develop and/or develop companies to keep pace with the latest developments their competitive capabilities on an ongoing basis to in production processes in a manner that achieves a keep pace with developments in the contemporary competitive advantage in the contemporary business business environment and thus secure a competitive environment, and the need to create harmonious position that guarantees their survival. Therefore, administrative integrations in an attempt to link product companies operating in a highly competitive life cycle technologies with target costs to strengthen environment must employ more effective and efficient the company's competitive advantage. technologies and methods to reduce costs and 1-3: Research Objectives improve the quality of product features early in the life The primary objective is to identify the role of the cycle. This is to meet customer desires, satisfy their integration link between product life cycle technology diverse needs, and gain competitive advantages that and target costing technology in strengthening provide companies with a superior position in the companies' competitive advantage by: market and achieve a larger market share, generating ongoing profits. This can be achieved by employing an 1. Introducing the literature on product life cycle integrated approach between contemporary technology at its various stages (before, during, and technologies that focus on the cost aspect and the after production). importance of managing this element efficiently and 2. Identifying the literature on strategic target costing effectively. Consequently, this approach links strategic and modern approaches to cost reduction, comparing product life cycle costing and strategic target costing, them with traditional costing. both of which are considered among the most 3. Explaining the literature on competitive advantage, important strategic cost management techniques. This its importance to companies, and the factors influencing research aims to shed light on these cost-effective it, as well as its sources and most prominent techniques as supporting tools for achieving and determinants. strengthening a company's competitive advantage. Chapter One: Scientific Research Methodology 4. Explaining the theoretical technical i