Target costing and kaizen costing methods in enterprise management

Abstract

Abstract. There are several approaches to optimizing costs. These include lean thinking (which stands for lean production), Target-Costing, Kaizen-Costing, Functional Cost Analysis, LCC-Costing, Just-in-time, XYZ-Analysis, ABC-Analysis and others. All these approaches or paths satisfy the need to maximise profit. At the same time taking into account that the product quality should remain at the same level [6]. One of the most important methods of cost optimization is the "Target costing" system. Cost management by this method is usually carried out in companies that produce high-tech products that can be equipped with innovative technologies [6].