ABSTRACT
At this point in the book you have an intellectual understanding of the logic and discipline of Target Costing. You realize that it is a market-driven, quantitative, disciplined process for determining what your customers want and are willing to pay for, and for arriving at a price that your customers will like and at costs that allow you to be profitable. For example, in Fig. 7.1 we show portions of the first three main Target Costing steps (Define the Product, Set the Targets, and the ‘‘Find Paths’’ part of Achieve the Target), with the second step expanded. Fig. 7.1 indicates many of the tools and techniques that you can apply along the way.
