Evaluation of the target costing model in the textile and apparel industry

The prime cost and product innovation have always been important in the textile and apparel industry. The survival of a company in the market depends on providing a good product with a good price. The traditional approach develops the product and then the market approach will follow this target with the cost which is based on the premium calculation. The product costing can change the process through a movement from this price towards the market price and reducing the earning target to reach a price target. Product development takes place in an environment where the market price and acceptable costs are available for a given product. In this paper, we will discuss the target costing process for the textile and apparel industry and the implications of this approach. We will also try to analyze the rules which move the textile and apparel industry towards the target costing.