What is the relationship between costs and profit in the target costing approach? In the target costing approach, a company begins with the price and then uses desired profit to find the maximum costs can incur. In the target costing approach, the higher the costs a company must incur, the higher the appropriate profit. In the target cositing approach, a company begins with costs and adds desired profit to find the appropriate price. In the target costing approach, the maximum nrice of a product is determined by profit, which is independent of costs