Target costing: the next frontier in strategic cost management

Target costing is an innovative technique that enables companies to deliver a customer-defined product at the lowest possible cost. Without proper planning, however, target costing can be difficult to implement effectively. Target Costing presents a framework for managers to understand how target costing works and how to plan and implement an effective system. Key topics include: How target costing relates to business strategy and profit planning; A process model that links target costing with the product development cycle; the linkages between customer requirements and costing; tools, information systems and measurement systems required to support target costing.