The Extent of Applying Target Cost Approach at Manufacturing Firm in the Gaza Strip - Field Study

This research investigates the capability of applying target cost approach to reduce and control the cost, get the benefit of managing the cost, and to identify its obstacles at manufacturing firms in the Gaza Strip. Distributing questionnaires to 50 firms, the researcher got the response rate of 67% (168 copies). The findings of the study show that manufacturing firms do not apply the whole basis and principles of the target cost approach in the Gaza strip because they face restrictions and difficulties in the organizational, managerial and accounting perspectives. Some of these restrictions and difficulties include the administration attitude that there is no need to utilize and apply this approach, the absence the supportive systems to apply the approach, the ignorance of the modern marketing strategies, and the ignorance of the importance and the value of the target cost approach. The study recommended that Gaza manufacturing firms should apply the target cost approach and benefit from its advantages to improve the operations of planning, cost controlling, and budget preparations so that they can develop their production operations, elevate their work quality, and improve their competitive advantages.