| The purpose of this study is to analyze the application of target costing in PT Megamakmur and the effects of applying the target costing method to increase company profit. This research was conducted through a case study in PT Megamakmur on products girl’s clothing. By using the cost data in the company in 2010, the author conducted an analysis of all costs incurred on the girl’s clothing, which is useful for the implementation of target costing in improving corporate profits. Based on research results, target costing can be applied in PT Megamakmur. Application of target costing will increase its profit from 37,49% to 40,43%. Increased profit is due to saving the expense of the company by doing value engineering. Total cost savings by performing value engineering is Rp 110.954.440. With the implementation of target costing, corporate profits would increase by 2,94% from the target price without reducing the quality of products produced the girl’s clothing. |