Abstract

Target system is one of the most important techniques which can help organizations to improve cost-based performances. In this method, the products ' sale price is anticipated before production processes start, based on surveys in the market and manufacturers try to design and manufacture a product according to the predetermined cost to ensure the management's desirable profit. Meanwhile, it should have a desirable quality and benefit from a competitive status, in a way that absorbs customers' satisfaction in suitable manner. In this research, we will focus on studying the obstacles of applying a target costing system in firms accepted in Tehran Stock Exchange. The statistical population of this research involves a sample of 100 people from among the managers and scholars of firms accepted in Stock Exchange. For statistical method of the research, we use T-Students test in regression analysis. The findings of this research indicate that the following items are among the obstacles of applying a target costing system: “it is impossible to assign a competitive price”, “costumers ' satisfaction idea is not common”, “there is no group work spirit”, “activity-based costing system is not used”, and “value engineering is not utilized”.