The relationship among target cost and cost reduction, activity-based cost, unlimited improvement and company performance: A research in Libya petroleum companies

As modern management accounting tools, target costing system, activity-based costing system along with unlimited improvement and corporate performance analysis studies are very important for the competitiveness and sustainability of businesses. In addition to examining the theoretical frameworks, advantages and disadvantages of these systems, the studies carried out with the aim of ensuring that companies reach the highest quality and lowest cost on time form the basis of unlimited improvement and corporate performance. The research aims to examine the relationship between cost reduction, activity-based costing system, unlimited improvement and corporate performance in Libyan oil companies using target costing system. In addition to examining the relationship between these variables in order to obtain the highest quality, the lowest cost and produce just in time, the issue of cost reduction is also discussed together with other variables in this study. In the research based on the use of the inductive method, structured scales whose validity and reliability were tested were used to examine these relationships. The universe of work consists of accountants, engineers and managers in each of the financial management, engineering and marketing management of Libyan oil companies, as well as general managers of all Libyan oil companies. As a result of the study, it was determined that target cost affects unlimited improvement, firm performance and unlimited improvement affects cost reduction. It is expected that this research will contribute to the clarification of the relationship between these variables in Libyan oil companies and to benefit from this relationship in reducing costs and increasing quality, and will guide researchers. KEYWORDS: Target Costing, Cost Reduction, Activity Based Cost, Unlimited Improvement and Company Performance