There is tough
time for the global economy. In every sector of economy is today face shrinking
profit and growth. Every Company is trying
optimize their operations in order to reduce the overall cost of the
business and proper use of resource. In time of company driven economy , the
companies are set the product price. The pricing procedure is to first set the
profit level and add the cost to it. But in present time economic situation,
company's profit is shirking . The economy are more market driven. The company
are set the price on the basis of Target Cost
Where the price is first set on the basis of feedback of customer, than company
selected price level are deducted from the price and cost is deduce. As cost is
set by market force the company’s have to use their resource optimally in order
maintain their profit level.
