lead to the introduction of new products that have created better benefits to target costing. It has to be noted that the value of historical information reduces with greater innovation, thereby, reducing the benefits of product level target costing. The degree of complexity of the product, level of investments required and the duration of product development process make up the factors that affect the target costing process based on product characteristics. Product viability is determined by the aforementioned factors. In turn, the target costing process is also modified to suit the different degrees of complexity required. Factors influencing component-level costing Supplier-Base strategy is the main factor that determines component-level target costing because it is known to play a key role in the details a firm has about its supplier capabilities. There are three characteristics that make up the supplier-base strategy, including the degree of horizontal integration, power over suppliers and nature of supplier relations. Horizontal integration captures the fraction of product costs sourced externally. Cost pressures on suppliers can drive target costing if the buying power of firms is high enough. In turn, this may lead to better benefits. More cooperative supplier relations have been shown to increase mutual benefits in terms of target costs particularly at a component level. Applications Aside from the application of target costing in the field of manufacturing, target costing are also widely used in the following areas. Energy An Energy Retrofit Loan Analysis Model has been developed using a Monte Carlo (MC) method for target costing in Energy Efficient buildings and construction. MC method has been shown to be effective in determining the impact of financial uncertainties in project performance. Target Value Design Decision Making Process (TVD-DMP) groups a set of energy efficiency methods at different optimization levels to evaluate costs and uncertainties involved in the energy efficiency process. Some major design parameters are specified using this methods including Facility Operation Schedule, Orientation, Plug load, HVAC and lighting systems. The entire process consists of three phases: initiation, definition and alignment. Initiation stage involves developing a business case for energy efficiency using target value design (TVD) training, organization and compensation. The definition process involves defining and validating the case by tools such as values analysis and bench marking processes to determine the allowable costs. By setting targets and designing the design process to align with those targets, TVD-DMP has been shown to achieve a high