ABSTRACT
We are now about to begin detailed discussion of the Target Costing process itself. In this chapter, we will focus on the step ‘‘Define the Product.’’ Relative to our high-level view of the five-step process, we are at the first step, as shown in Fig. 2.1. As will seen, this chapter could as well have been entitled ‘‘Quantify Customer’s Needs.’’ This is because most of the activities are focused on the specific features that the product will contain. This information is critical since the feature set will have a dominant impact on the eventual cost of the product.
