The Impact of Applying the Target Costing Technique on Cost Reduction and Achieving Competitive Advantage: A Field Study on Commercial Banks in the "Ajdabiya" Municipality

Abstract

This study aimed to determine the impact of applying the Target Costing method on reducing costs and achieving competitive advantage in commercial banks within the "Ajdabiya Municipality." This was achieved by measuring its role in cost reduction, improving the quality of banking services, and enhancing operational flexibility. To achieve this objective, a modern methodology combining induction, deduction, and a descriptive-analytical approach was utilized, conducted through a field study involving a sample of branch managers, assistant managers, department heads, and other employees in the branches and agencies of commercial banks operating in the Ajdabiya Municipality. Data was collected via a questionnaire and analyzed using descriptive statistics and the One Sample T-Test at a significance level of (0.05).  The study concluded that there is a positive impact of applying the Target Costing method in achieving competitive advantage in commercial banks by reducing the costs of banking services, improving their quality, and increasing the flexibility of these services. The study recommended increasing attention to qualifying and developing employees to keep pace with global developments in applying the Target Costing method to ensure the sustainability of competitive advantage, and to conduct further studies in this field.