A Proposed Framework for Implementing the Target Cost Approach in the Egyptian Contracting Sector Companies - Case Study

The purpose of this study is to study and measure the extent to which the target cost approach can be applied as one of the most important strategic management accounting tools in the construction sector companies. In order to achieve the main objective of the research, the target cost approach was identified in terms of concept, principles and steps for implementation. General of the construction sector, which is unique to this sector without the industrial sector, also examined the factors and tools to implement the input cost target in the contracting sector, and derive a comprehensive framework proposed including the most important tools and support systems required for the application In the construction sector companies, and finally targeted research test the overall framework through the derivation of a proposed indicator to measure the extent of acceptance, and in order to achieve this was an applied     study through a case study on one of the Egyptian contracting companies.
The researcher reached several conclusions that can be formulated in the following areas: • There are pillars and elements that must be met in the proper application of the target cost approach, including value engineering, cost analysis, cost tables, and a supportive organizational structure. The constituents consist of organizational structure, knowledge sharing, supportive tools and systems. The factors influencing the effectiveness of the organizational structure are the support of senior management, continuing education and training, multidisciplinary team, and relationships with suppliers.    The factors influencing the effectiveness of knowledge management are information sharing, interdepartmental communication, incentive and motivation systems, The tools supporting the implementation of the target cost input in the contracting sector are the value engineering information systems and the cost tables system.