Answer:
Explanation:
Target costing is a costing system used to determine the life cycle cost of a product or service while the quality and profit on such products are still maintained.
It relies on the external market condition as the desired profit margin is deducted from the market price to arrive at it.
It is relevant to every every organisation that utilizes cost in the process of producing or providing a service . This means that it can be utilized by banks , looking at the various modern services that banks produce , with the focus shifted to service delivery system.
It can also be applied to the IT industry and the manufacturing industry , every organisation that uses cost with the aim of reducing cost while the quality of products and services are still maintained,
Example of services include provision of savings account , production of IT components , manufacturing of cars etc.
