Target costing gives managers the ability to control or dictate the costs of a new product at the planning stage of the product's life cycle.

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Target costing is a proactive cost control technique that allows managers to set a target cost for a new product during the planning phase of the product's life cycle. By doing so, managers can design the product to meet customer needs and quality standards while also achieving the desired profit margin. This approach enables managers to make informed decisions about the product's design, production, and pricing while also ensuring that the product remains competitive in the marketplace.

Target Costing Gives Managers the Ability to Control or Dictate