Archive | Target Costing

Difference between Traditional Costing and Target Costing

The upcoming discussion will update you about the difference between traditional costing and target costing. Traditionally, manufacturers would make use of the cost-plus approach to estimate the product price. A starting point for them would be to conduct market research to determine its market segment's preferences and hence its product's characteristics that will meet the customer's needs. This will be [...]

By |2016-06-18T06:59:43+00:00June 18, 2016|Target Costing|Comments Off on Difference between Traditional Costing and Target Costing

7 Main Features of Target Costing Process

The following points highlight the seven main features of target costing. 1. Target Costing is viewed as an integral part of the design and introduction of new products. As such, it is part of an overall profit management process, rather than simply a tool for cost reduction and cost management. The first part of the process is driven by customers, [...]

By |2016-06-18T06:59:43+00:00June 18, 2016|Target Costing|Comments Off on 7 Main Features of Target Costing Process
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