The Role of Target Costing and Balanced Scorecard Mechanisms in Supporting the Competitiveness of Small and Medium Enterprises in Egypt (A Test Study)

Document Type : Original Article

Authors

1 Accounting Department, Faculty of Commerce, Benha University

2 Accounting Department, Faculty of Commerce, Benha University, Egypt

Abstract

The main idea of the study is trying to use the mechanisms of target cost management and the balanced scorecard method to support the competitiveness of small and medium projects in Egypt. This study aims to try to improve the performance of small and medium enterprises by using the target cost method, which is used in pricing and determining costs and the extent of the suitability of these costs in light of the conditions of the competitive environment and determining the profit margin, while the balanced scorecard method, which is one of the most important modern management accounting methods that contribute to control and evaluate performance, and paying attention to financial measures such as profit and non-financial measures such as customer satisfaction.
This link between the two methods may help small and medium projects achieve continuous improvement in quality, reducing costs, achieve profitability and support the competitiveness of these projects.
The researcher conducted a test study and applied it on a random sample consisting of two hundred and fifty individuals distributed among the classes that represent the study community (bank loan and credit accountant - small and medium enterprise accountant - owner of a small and medium projects.
The study concluded that there is a relationship and interrelationship between the target cost method and the balanced scorecard method and their role in supporting the competitiveness of small and medium projects.

Keywords

Benha Journal of Humanities Sciences
Volume 3, Issue 2
March and April 2024
Pages 461-479

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