Target costing and cost reduction in Zimbabwe: a case of manufacturing small to medium enterprises.

Author

Nhau, Chiedza.

Title

Target costing and cost reduction in Zimbabwe: a case of manufacturing small to medium enterprises.

Abstract

This study investigates the effectiveness of target costing and cost control in Zimbabwe manufacturing SMEs. The primary objective is to explore the impact of target costing and cost reduction strategies on the financial performance of these enterprises. A survey of 32 SMEs in Harare was conducted using structured questionnaires and secondary data was collected from journals and electronic media. The data analysis was performed using SPSS version 20, revealing that negative variance persisted, leading to decreased organizational performance. The cost control method had no motivational impact on employee training, worker involvement and enhanced control reports to improve the situation.

Date

June 2024

Publisher

BUSE

Keywords

Target costing,

Cost control in Zimbabwe,

SMEs,

Supervisor

NIL