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Abstract

Prices represent the monetary expression of the value of goods and services provided to customers, and the pricing process is a critical operation with a profound impact on the success and sustainability of business organizations, given its influence on profitability and the redistribution of national income allocated for consumption, which enables individuals to allocate their income between essential and luxury goods. Generally, the pricing process serves a variety of objectives that differ across organizations and is influenced by a set of factors requiring strategic responses; traditionally, there are two primary approaches to price determination: the economic approach, which is fundamentally based on market conditions and the interactions of supply and demand, and the accounting approach, which relies on cost as the basis for pricing through various methods. However, due to competitive pressures and the growth of customer-oriented approaches aimed at achieving satisfaction, the traditional perception of pricing has shifted toward being market-driven rather than cost-driven, which in turn has reflected on the concept of target costing. Therefore, this research centers on demonstrating the impact of target price on target costing by examining traditional pricing approaches, and to achieve this, the study is structured into five sections preceded by the scientific methodology: the first section provides an introduction to pricing; the second covers the economic and accounting approaches to pricing; the third discusses target price and its impact on target costing; the fourth presents the proposed methodology and application mechanism; and the final section offers conclusions and recommendations.

DOI

10.33095/jeas.v13i48.1236

Subject Area

Accounting

First Page

224

Last Page

250

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