Traditional wisdom was to create a product, figure out the cost, add a profit margin, and then determine the price. Target costing is another way to watch costs and setting prices.

Lets discuss the role and type of the target costing in some more depth. Do research on the Internet including following links and show the reference for the information. Don't forget to respond to a colleague's posting also.

Grading Criteria:You do not need to discuss every aspect of the topic(s) covered by this discussion. Choose one or two relevant aspects for further investigation and share your knowledge with the class. Try to add information not previously discussed by others. Please provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and include references.

Accounting for Management. (n.d.). Target Costing Approach to Pricing. Retrieved fromhttp://www.accountingformanagement.com/target_costing_pricing_products_and_services.htm

Huh S., Yook K., Kim I. (Jan 2008) Relationship between organizational capabilities and performance of target costing: An empirical study of Japanese companies.Journal of International Business Research. Vol. 7 Issue 1, p91-107.

Part 5 Target Costing. BMALeanManagement. (2011, July 4). YouTube Video. Retrieved fromhttp://www.youtube.com/watch?v=hiiw1t4DA0Q