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SCRC Article Library: Target Costing

Target Costing

Published on: Jan, 20, 2011

It is the process of designing a product to meet a specific cost objective. Target costing involves setting the planned selling price, subtracting the desired profit as well as marketing and distribution costs, thus leaving the required manufacturing or target cost.

Source for above definitions: http://www.apics.org/ (10th ed.)

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