After-Production and After-Sales Stages Target Costing Cost Reduction: An Empirical Study

This study critically examines the efficacy of target costing on minimizing production and subsequent sales-related costs among industrial entities listed on the Amman Stock Exchange. Employing a methodologically robust approach, the research utilizes responses from a substantial sample comprising 181 employees spanning various roles within these companies. The sample reflects a significant portion of the industry, with participants selected from 29 out of 33 Jordanian industrial companies represented on the stock exchange, accounting for an impressive 87.9% coverage of the sector. This broad sample base ensures the findings' relevance and applicability across the industrial landscape in Jordan. A statistical analysis of the study using SPSS showed that target costing significantly impacts cost reduction efforts after production and after sales, with statistical significance at the level of α ≤ 0.05.As a result of this research, firms are able to streamline operations and reduce extraneous costs by implementing target costing techniques, resulting in better financial management and competitive positioning. This study provides valuable insights for industrial companies wishing to improve operational efficiency and market dominance through strategic cost management practices by offering a nuanced understanding of target costing's impact within a unique economic and geographical context.