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Control Points which should be taken care of in all target costing projects:
1. Identification of Principal control point: Experience shows that there always comes a point, where the cost of maintaining the design team exceeds the savings gardened from additional iterations. It is also necessary that most products should be launched within a reasonably short time or they will miss the appropriate market, where they will beat the delivery of competing products to the market. This emphasis that the principal control points over the course of target costing programme should be properly taken care of.
2. Point of Go/No Go decision: If target costing is not reached, management retains power to abandon the design project. There comes a point, when actual performance is very close to expected performance in matter of cost incurrence.
3. Milestone can be in terms of timer or points: A milestone can be in terms of time, say one month. It can also be on the points in design process, at which specific activities are completed.
