Target costing in investment management and an implementation in telecommunication sector

The concept of need will continue to exist wherever and whenever human beings exist. Many products and services that human beings need are produced by businesses and these products and services are consumed by human beings. This cycle is defined as economic activity. The definition of economics has been accepted as meeting the needs of individuals with scarce resources. Organizations that offer limited resources to the needs of individuals are also businesses. Businesses use their production capabilities that occur as a result of their investments to meet these needs. When investing, businesses consider many factors that affect investment decisions positively or negatively. These factors are divided into three main categories as macro, sectoral and business-specific factors. Businesses aim to minimize the cost items that create the investment and maximize the profit. This is also an important element for businesses to maintain their existence. Businesses need some numerical indicators to be able to make a selection between investment options. These numerical indicators occur with investment evaluation methods and their results affect the investment choices of the businesses. Investment management is as important as investment choice for businesses. Because, as the methods used by the businesses in the investment management process after the investment choices directly affect both the success of the investment and the financial situation of the business. Target costing method is one of the leading methods that are applied. Nowadays, with the development of technology, competition and customer expectations in the market are increasing for the businesses whose subject of activity is technology. For this reason, it is known that investment management has a great importance in telecommunication sector as it is in every sector. With the digitalization, the investments that are made in the telecommunication sector in recent years are at a considerable level. In this study, cost management and target costing method in telecommunication sector are examined in detail. The results show that efficient investment management and target costing vi method in the telecommunication sector, as in all other sectors, enable businesses to keep their costs under control according to the sales prices in the market and to use the investment funds they have in efficient areas. Key Words: Investment Decisions, Investment Management, Cost, Target Costing