The variable cost and the target-cost as a support to the investment decisions in the development of new products
Abstract
The variable cost, which is attributed only to the products variable costs and to the target-cost, which is based on the market price to be supported by the consumers has been constituted in important documents, and it helps the administrators in the process of making decisions. In this perspective, this article has the objective to present a theoretical reflection about the information generated by the variable cost associated to a methodology of the target-cost, as a support to the decisions on the development of new products. Initially, it shows the theoretical aspect, which characterizes the surroundings where investment decisions take place. After that a theoretical there is the incursion on the target cost and about the Engineering of Values while considering elements in the measuring of products costs, regarding the variable cost. And then, it approaches decisions on investments to the development of new products according to the presupposed variable cost and to the target-cost.
Key words: investment decisions, variable costs, target costing.
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