Examining the Use of Management Information Systems and Its Relationship with Target Costing in the Social Security Organization of Borujerd County

Abstract

Today, perhaps no term in management is used as frequently as “management information system.” All activities performed with the aid of computers are referred to as information systems. Information systems encompass a wide range of technologies and processes: from complex hardware systems to routine accounting reports; from high-performance systems that track the positions of spacecraft to primary data sources such as accounts and invoices; from central databases that collect, organize, store, and summarize information to existing storage systems that have been in use for over twenty years; and from comprehensive integrated central management systems to specialists’ remote terminals connected to computers. Target costing emphasizes that, to reduce costs, not only are production costs important, but pre-production and post-production costs are also important. Furthermore, to achieve a company’s objectives, the involvement of managers, cost accountants, production managers, design and quality control personnel, and other key managers is necessary. The company must also maintain close relationships with suppliers of raw materials and customers to create the necessary value.