ABSTRACT
By now you are probably wondering, ‘‘We’re into the third chapter in this book about Target Costing. When are we going to start talking about cost?’’ The answer is, ‘‘Soon-but not quite yet.’’ We have discussed the first step in Target Costing: ‘‘Define the Product.’’ The second step is ‘‘Set the Target.’’ Notice we have not said ‘‘Set the Target Cost’’; we simply said ‘‘Set the Target.’’ The readers of fine print will ask, ‘‘How many targets need to be set?’’ The correct answer is, ‘‘There are many targets that will be set.’’
