Target costing is a process of determining the actual cost price of any product or service after considering the desired profit margin behind the same.
Formula
Target Cost = Expected selling price – Desired profit
It helps in completing the product within the set price by changing the process for the same or by making the existing process more efficient.
The process of target costing is as below:
Browse the definition and meaning of more terms similar to Target Costing. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.
Search & Explore : Management Dictionary
Write for Us!
Quizzes & Skills!
Quizzes test your expertise in business and Skill tests evaluate your management traits
Related Business Content
Top Companies Lists
