نظام التكلفة المستهدفة بين النظرية والتطبيق (دراسة تطبيقية على مصانع النسيج والملابس في فلسطين)
Target Costing Between Theory and Practice (Field Study on Palestinian Textile and Clothing Factories)
أسامة حسين عبد رومي
Osamah Husein Abed Rumi
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Due to the differences in costs of production between local and foreign producers , the clothing and textile factories shifted globally from high cost countries toward low cost countries. Furthermore most of textile and clothing supply chains were controlled by retailers those demand a variety of styles with small lots. How ever Palestinian clothing and textile factories face unfair competition with the imported products due to the high costs relative to imported products. Also, some Israeli factories were shifted toward neighboring countries. As a result 49.6 % of the Palestinian clothing and 21% of Palestinian textile Factories were closed. Also 83 % of the closed factories have less than ten employees. This study aims to examine the application of principles of target costing system in Palestinian clothing and textile factories. Further the relations between target costing principles (price led costing, focus on customers, supply chain involvement, crossfunctional involvement, and life cycle orientation) and each of capital size, the number of employees, the costing system, and the number of annual new products have been examined. Secondary resources like books and published articles were used in order to show how target costing can fits into Palestinian clothing and textile factories. The primary resources such as interviews and questionnaire were also used. A sample of 185 questionnaires were distributed randomly to Palestinian clothing and textile factories that works in West Bank and Gaza Strip (WBGS) in represents of 343 Palestinian clothing and textile factories in (WBGS) that employed more than ten employees. 175 of these questionnaires were collected. The results concluded that: It was found that 33.7 % of Palestinian clothing and textile factories have.1 applied target costing either partially or totally. Also, 87.5 % of Palestinian factories use traditional costing systems such as job costing and process costing systems. The most statistically significant pricing method is to calculate the actual cost,.2 then to add profit margin to unit cost to obtain unit price. Price-led (market price that accepted by customers, and competitors price) costing was used, but it is not statistically significant. The most statistically significant factories in regard with competitors are: to.3 focus on competing with prices, quality, maintain customer loyalty. The Palestinian producers collect information about customer wants and needs. In regard to supply chain involvement the most statistically significant issues.4 were: making long term contracts, and involving the supply chains in product design. However sharing information about production cost, and sharing information about target cost were not statistically significant. The most statistically significant departments that share in cost reduction efforts.5 are: selling, marketing and accounting, but design and purchasing departments were not statistically significant. The Palestinian clothing and textile factories depend significantly on intensive-labor based on experience, and depend less on educated and trained labor. On the other hand the dependence on developed technology was not statistically significant. While management contributes significantly in adoption of target costing.6 system, it dose not give the employees any incentive when they achieve the targeted cost level. The most statistically significant cost reduction tool was: outsourcing. In.7 contrast value analysis, quality function deployment and just in time costing were not statistically significant. The most statistically significant cost reduction was achieved in reducing wastage cost, storage, and setup costs. However labor cost reduction wasn't statistically significant. The lack of knowledge and financial resources were the most statistically.8 significant reasons for not implementing target costing in the Palestinian clothing and textile factories. 9.Textile factories apply target costing principles such as supply chaininvolvement, customer focus, and price-led costing more significantly thanclothing factories. . The numbers of employees has no effect on implementation of target costing.10 The more number of annual developed products, the higher of implementation.11 of target costing principles such as: focus on customers, supply chain involvement. The implementation of target costing principles depends on an increasing.12 capital: to focus on customers and cross functional involvement. Also the factories that implement activity-based costing either fully or partially.13 aim to: focus on customers, cross functional involvement, and price led costing. There is a relation between number of annual developed products, and capital.14 size and the degree of cost reduction in Palestinian clothing and textile factories. Recommendations: Based on the above results, the following recommendations outlined below: To adapt activity based costing in order to understand the behavior of activities.1 in the Palestinian clothing and textile industry and to obtain accurate unit cost, the ABC can be used in order to eliminate non-value added activities. To focus on producing competitive products, the information about niches can.2 be obtained from retailers. The coordination between supply chains and customers should be enhanced by.3 sharing information about local market and international markets. , Investing in educated, trained labour, is increase to adapt developed technology.4 and to share the workers in decision making. Enhancing coordination between departments in the Palestinian clothing and.5 textile industry is increase involvement levels of design and purchasing departments in target costing. To use cost reduction tools such as: value analysis and quality function.6 deployment. The Palestinian clothing and textile factories must produce high value added.7 products, and to produce different models with small quantities in order to increase customer satisfaction. 8. Intensifying the investment is necessary to use modern costing and production.8 systems such as ABC. Target costing will never be implemented successfully in short time unless that.9 management must encourage the adoption of target costing to achieve costs reduction. However management must develop incentive systems for both employees and suppliers.