The Impact of Using Target Costing and Kaizen Approaches on Increasing Profits in Industrial Companies: : An Applied Study at Hayat Soft Drinks Company

Abstract

This study primarily aims to explore the Kaizen technique and target costing method in modern cost management and product development within industrial projects. Additionally, it examines their applicability and relationship to cost reduction and, consequently, profit increase in industrial enterprises operating in the Kurdistan region. The researcher employed a practical approach to achieve the study's objectives and test its hypothesis by applying the Kaizen technique and target costing method to the actual data of Hayat Soft Drinks and Mineral Water Company, which represents the applied aspect of the study. Among the key findings of the study is that the target costing and Kaizen methods are among the most important modern cost management techniques. These methods utilize future forecasts for planning purposes and consider external factors affecting the company to enhance profitability and competitiveness in an environment characterized by increasing competition. The study concluded with several recommendations, the most important of which is the necessity for industrial units to adopt modern techniques to improve production processes. This plays a significant and prominent role in enhancing the competitive capabilities of these units in facing the current changing environment and achieving the unit's objectives of survival, growth, and continued provision of low-cost, high-quality products.