Target Costing as a Critical Factor for Efficiency of Manufacturing Business in Plateau State, Nigeria

The study examined the impact of target costing (TC) On the efficiency of manufacturing enterprises in Plateau State, Nigeria. Using primary sources, data for the study were obtained from responses to the questionnaire designed to reflect five (5) point Likert scale incorporating indicators of efficiency (dependent variable, PQ) and TC (explanatory variables: QoM, PrD, ProcD, and VCO) in the construct. The questionnaire was administered on 235 staff of seven (7) sampled manufacturing businesses in Jos, Plateau state with 153 of the questionnaires returned representing approximately 65% response rate. The data obtained were analyzed using ordinary least square (OLS) regression. The results indicate that all the explanatory variables combined have positive significant effect on product quality (r2 = 41.2%). However, quantity of material, product design, process design, and value chain orientation individually has positive but insignificant effect on product quality of manufacturing businesses. The study recommends that manufacturing businesses in Plateau state should implement TC with the government supporting the efforts of entrepreneurs by embarking on economic policies to tackle issues of inflation and devalued currency