ECONOMICS

Detailed explanation-1: -Developing a product that satisfies the need of the potential customers is the first step in implementing target pricing and target costing.

Detailed explanation-2: -The target costing process begins by establishing a selling price, based on market research, for the new product. From this target selling price, the desired (target) profit is subtracted to determine the target cost.

Detailed explanation-3: -First is the establishment phase that involves establishing a target cost during the product planning and development stages. The attainment phase involves achieving a target cost and takes place during the design development and production stages of the cycle.