Applying the Target Costing Technique and its Impact on Achieving Competitive Advantage: A Field Study of the Libyan Iron and Steel Company – Misrata

Abstract

This study aimed to identify the impact of applying the Target Costing technique on achieving competitive advantage at the Libyan Iron and Steel Company in Misrata. It also examined the availability of the necessary requirements for implementing target costing and analyzed the dimensions of competitive advantage (cost, quality, and innovation). The study adopted a descriptive-analytical approach, using a questionnaire as the primary tool for data collection. A random sample was selected, including general managers, financial managers, and accountants; 46 valid questionnaires were analyzed.
The results revealed that the application of target costing significantly enhances the company's competitiveness, ensuring its market survival and sustainability. Furthermore, the findings indicated that the company possesses the fundamental requirements for implementing target costing and maintains the core dimensions of competitive advantage. The study recommended that the company should optimize its resource utilization to maximize benefits and effectively face intense competition at a lower cost. It also emphasized the need to develop accounting systems to keep pace with the continuous developments in the business environment