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Target costing

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IGC-DEFINITION

Target costing / Target Costing
Target costing is the concept of market-oriented target cost management, which applies in the early phases of product development. With target costing products are to be developed to fulfil functional features defined by the customer, thus involving costs to be agreed / accepted by the customer. The obvious question is: How much may a product cost? From the very beginning costing goes hand in hand with product planning and settles on the price determined by market research.

from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)

Source

IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010

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