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How does target costing analysis benefit Microsoft Corporation, which is in the Technology Sector, a derivative...

How does target costing analysis benefit Microsoft Corporation, which is in the Technology Sector, a derivative of the Software Infrastructure Industry?

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Target costing is an approach to determine a product life cycle cost which should be sufficient to develop specified functionality and quality,while ensuring desired proit.

Target cosing helps Microsoft corporation through setting a selling price at a desired margin after targeting a cost.Tarket coating enables microsoft to establish concrete and highly visible cost targets for their new products.To maximise cost control and enhance profit improvement,most companies set relatively aggressive targets.

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