The major benefit of target costing

 Targeting cost is the Japaneses Management Style which is now adopt by EU countries. The concept of target costing is the company have to identified  the affordable price for the specific product or service that they are going to sales first than set up the cost.

The concept of target costing is to reduce the cost the large production or in total while the Kaizen costing which is also from Japan, reduce the cost from the small incremental amount.

After the company set up the cost, then the company should compare the cost gap between the set cost and actual cost. It has to work to make sure that gap is close.

Remember, closing gap is doesn't mean reduce the quality.