This research is to support company to implementtarget costing method as tool of management accounting in lower production cost. Target costing method is a effective method to reduce production cost through evaluation of the product value (value engineering) and to maintain customer satisfaction. By redesigning cost, the company will reached the maximum profit from the company’s product selling price per unit. Furthermore, the company can make cost savings before the product is produced.
This research proves that the implementation of target costing is a great alternative to maximize company’s target profit by savings production cost within the process of design product.