?
Application of a System-synergistic Approach in the Development of the Target Costing Mechanism for a High-tech Industrial Enterprise in Emerging Market
The goal of this study is the development of the target costing mechanism for a high-tech
industrial enterprise based on system-synergistic approach (SSA). The relevance of the
study is underpinned by increasing uncertainty of business environment. The
“conventional” cost management systems based on functional, process, project or systembased
approaches have become inefficient due to their low flexibility and adaptability to
the external changes. Application of approach ensures the continuous interaction to the
environment, accounting for risks and adaptation of costing system to the external changes.
The mechanism is aimed for implementation in the company’s R&D processes. It provides
monitoring and assessment of impact of uncertainties on the cost drivers and on the cash
flow return on investment (CFROI) during the product lifecycle. The results include the
mechanism’s concept, its block diagram, and tools. The mechanism provides holistic
approach to SSA applications and ensures integration and coordination of target costing
activities.