full text: https://en.wikipedia.org/wiki/Target_costing

Target costing is an approach to determine a product’s life-cycle cost which should be sufficient to develop specified functionality and quality, while ensuring its desired profit.

full text: http://www.accountingnotes.net/cost-accounting/target-costing/target-costing-definition-objectives-and-advantages/5775

Broadly speaking, a target costing system has three objectives:

a. To lower the costs of new products so that the required profit level can be ensured.

b. The new products meet the levels of quality, delivery timing and price required by the market.

c. To motivate all company employees to achieve the target profit during new product development by making target costing a companywide profit management activity.