(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss a

(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potential

limitations in its application. (8 marks)

(c) Target costing should be viewed as an integral part of a strategic profit management system. The initial consideration in targetcosting is the determination of an estimate of the selling price for a new product which will enable a firm to capture its