TARGET COSTING AS A TOOL OF STRATEGIC CONTROLLING IN THE AGRICULTURAL SECTOR

Анотація

This article is devoted to the study of target costing application as a strategic controlling tool in Ukraine's agricultural sector. The research aims to substantiate the feasibility and mechanisms of target costing integration into strategic management systems of agricultural enterprises to improve cost management efficiency and strengthen competitive positions. The paper examines theoretical foundations of target costing methodology, which is based on the reverse engineering principle from expected market price to allowable cost considering target profit margin. The study justifies particular relevance of this method in agricultural sector under conditions of high competition, raw materials and resources price volatility, production seasonality, and need for rapid adaptation to changing market conditions. Practical analysis of target costing application is conducted using MHP PJSC case study in chicken nuggets production under "Legko!" brand. Target cost is calculated at 80.47 UAH per package with market price of 100.59 UAH and desired profitability level of 20%. It is revealed that actual cost (85.1 UAH) exceeds target cost, indicating cost optimization potential. Specific cost optimization measures for logistics, packaging, administrative and marketing expenses are proposed, allowing cost reduction to 79.7 UAH. The role of digital technologies, particularly ERP systems and BI platforms, in ensuring effective target costing implementation is examined. Main risks and limitations of method application in agribusiness are identified, including complexity of adaptation to natural-climatic factors and need for cross-functional integration. Research results confirm target costing effectiveness as strategic controlling tool for agricultural enterprises, contributing to enhanced competitiveness and financial-economic efficiency. The study demonstrates that target costing enables agricultural companies to establish cost control at all production cycle stages and increase financial flow transparency. Additionally, the method facilitates strategic decisions regarding new product launches or market entry. Digital transformation through automated target costing calculations allows scaling this approach across multiple product lines while ensuring transparency, accuracy, and operational decision-making efficiency.

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