Question: Traditional wisdom was to create a product, figure out the cost, add a profit margin, and then determine the price. Target costing is another way to "watch" costs and setting prices. See references below.
Accounting for Management. (n.d.). Target Costing Approach to Pricing. Retrieved from
https://www.accountingformanagement.com/target_costing_pricing_products_and_services.htm
J Feil, P. , Yook, K., & Kim, I. Japanese Target Costing: A Historical Perspective. (2004, Spring). International Journal of Strategic Cost Management. Retrieved from
https://economiceducation.us/dotAsset/785833.pdf