Poising Between Price And Quality Using Target Costing

During the last years target costing is accepted as better way for the development of new products. Target costing method is used to control the early stages costs of product. The paper discusses the process of four stages of product development with the use of target costing. This paper describes the appropriate strategy in competitive business environment and the use of strategy in target costing with the survival zone and the paper also presents how target costing is better than old costing method for product development in current business environment. Finally, this paper presents target costing is a better way to reduce cost of new product and to balance the price and quality of product than old method.