Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/58847
Title: Application of target costing and performance analysis : evidence from Indian automobile industry
Authors: Narsaiah, N.
Keywords: Target costing -- India
Automobile industry and trade -- India
Automobile industry and trade -- Finance
Automobile industry and trade -- Accounting
Issue Date: 2020-07
Publisher: Ahmet Gökgöz
Citation: Narsaiah, N. (2020). Application of target costing and performance analysis : evidence from Indian automobile industry. Journal of Accounting, Finance and Auditing Studies, 6(3), 148-174.
Abstract: Purpose: The manufacturing companies must keep attention over challenges and for the moment of adopt technology and practices instead of observation of competition amongst competitor companies.To create automobile business successful in India, companies are essential to adopt better cost accounting techniques to minimize cost of products and service costs. -- Design/methodology/approach: This research investigates the application procedure of Target Costing (TC) in automobile companies in India. This study employed Target Costing as a dependent variable while Profitability; Growth; Net Tangibility Assets (NTA); EPS and Firm Size are independent variables. The study adopted convenience sample of top ten automobile companies listed on BSE of India and panel data has covered from 2014-15 to 2018-19 years. Data was analyzed through using statistical techniques of descriptive statistical analysis, Pearson’s Correlation, Simple Regression and Multiple Regression analysis and using the SPSS. -- Findings: The result of the target costing impact on profitability has reported by Pearson’s correlation result shown a negative relationship. Similarly, Target costing impact on Return on sales examined by simple regression analysis and revealed that there is positive correlation. Finally, Target costing impact on financial performance examined by multiple regression results revealed that there is positive correlation with Revenue from Operation; Profitability; Return on Sales (ROS) and Growth, while negative correlation revealed by Margin from Operation; ROA; Net Tangibility Assets(NTA); EPS and Firm Size. -- Originality/value: Target Costing has been identified as a popular technique to accomplish automobile company’s goals. Target costing consist exclusive approach to decide target price for the product and services. Target Costing ensure that new product price would be competitive in the market with substantial quality of products and services. This research investigates the application procedure of Target Costing (TC) and examined financial performance of Indian Automobile companies.
URI: https://www.um.edu.mt/library/oar/handle/123456789/58847
Appears in Collections:Journal of Accounting, Finance and Auditing Studies, Volume 6, Issue 3
Journal of Accounting, Finance and Auditing Studies, Volume 6, Issue 3

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