New product development is an important process for business’ sustainability. Making decisions that related to new product’s entering to marketing must depent on this product’s cost. Especially, at the design level new product’s standart cost is efficient for making decisions. Because of that cost determination an management activity is started from design level and continued through the product’s life cycle. Target costing is a cost management tool that is used at design level for cost determination and management. At this article, new product development process and at this process how to calculate costs in this process are examined.

Keywords: New Product Development Process, Target Costing