Go to the website of DRM Associates at http://www.npd-solutions.com/target.html. Read the article on target costing.
According to the article, when should target costing be used? What are the benefits of using target costing at that stage? Do you think this approach will work in all situations? Why or why not?
Please answer 100 words or more.
Meaning of Target costing:
Target costing is the process of determining and realizing the total cost at which a proposed product with specified functionality must be produced to generate the desired profitability at its anticipated selling price per unit.
When the target costing be used?
The target costing should be used in product development phase.
What are the benefits of using target costing at this stage?
If the target costing is introduced in the product development phase, the following benefits are available:
1. It is easy for the company to control the cost. In case of traditional ...
The answer contains meaning of target costing,when target costing can be used and when the target costing cannot be used