Target costing involves four main steps: market analysis, target price setting, target cost setting, and cost management. To apply them in corporate accounting, begin by researching the target market and understanding customer needs and willingness to pay. Analyze competitors and their prices, features, and quality to determine your market position and differentiation strategy. Then set a realistic and competitive price that reflects your value proposition and customer expectations, considering your market share, demand, and price elasticity. Subtract your desired profit margin from the target price to get the target cost; this should be based on financial goals, risk, and return on investment, and should be lower than or equal to the estimated actual cost. Lastly, compare the target cost with the estimated actual cost to calculate the cost gap and identify cost drivers and opportunities for cost reduction or elimination. Implement the cost reduction actions and monitor results; adjust the target cost and price as needed.