Overview
Companies are able to leverage target costing to gain a competitive advantage in the market. How much cost can an entity afford to add and still make a profit? When well executed, target costing will allow a firm to improve their competitive position while improving quality, reducing costs and accelerating time to market. (Ansari & al., 2003). The firm can further maintain a competitive advantage by effectively managing quality costs to ensure that products or services meet customers expectations.
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