Course Information

MN7503 Target Costing

Credits: 3.00

Description:
Target Costing is a disciplined process for determining and realizing a total cost at which a product with specified functionality must be produced to generate the desired profitability at its anticipated selling price. This course presents both the theoretical foundation and the practical application of Target Costing methodology to the product-realization process. The topics include basic accounting, principles of Target Costing, the Target Costing Process, quantifying the customer requirements, defining the product feature set, price forecasting, experience curves, cost- functionality tradeoffs and implementation check lists. The course includes a hands-on design project in which teams of students will apply the principles of target costing to design a new product.