THE COST CONTROL BY APPLYING THE TARGET COSTING METHOD IN THE CONSTRUCTION INDUSTRY

摘要

The Romanian economic spectrum considered on a slightly increasing trend in the general aspects of the national economy, feels increasingly the need for a development in the cost management issue. One of the modern methods of cost calculation that can fill this gap in the Romanian business practice in management accounting is the target costing method. The overall objective of this case study is to demonstrate the applicability and usefulness of this method in the cost controlling activity, widely used in the field of managerial accounting practice in the developed economies. The financial accounting and the managerial accounting converge in terms of ultimate interest for the company, i.e. value creation and performance increase in a sustainable way. After performing the case study with real financial data, we conclude that the target costing method is applicable and particularly useful in the construction industry and the results may provide support for decision-makers.