A target cost is calculated by subtracting the desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of productSomething that has b... design that involves estimated a target cost, then designing the product/service to meet that cost.
Logistics Wordbook
Target Costing
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