University Business School, Panjab University, Chandigarh.
In the liberalization environment, Indian businesses are now compelled to be competitive in the global market; the traditional cost approach is no longer workable. The need is arise to apply the system named as “Target Costing” which is very widely used by the Japanese firm, and later on applied by European firms. A survey of 107 financial Executives in India were therefore made to gain insight into the use of Target costing system in order to manage the cost and other managerial decisions for Public Sector and Private Sector. This paper also made an attempt to find out how the finance functions can provide an effective co-ordination and integrative role to focus organizational efforts towards effective cost management.
