Cost management is a complex and one of the fundamental business processes of the modern management. Managers in order to achieve their goal- maximising profit since they have relatively little effect on revenue cost management is recognised as a key determent of an overall financial result. Nowadays managers do not use cost management primarily on the whole business as it was before, whereas cost planning as well as impacting activities are managed on the lower levels also -such as sector levels, project levels, business process levels, work places etc. Additionally, it is merely not enough to execute the planning activities whereas it is also important to do the systematic oversight and running the corrective tasks to make sure that actual costs do not oversize anticipated that is primarily planned costs. Therefore, it is important to run corrective activities in a timely and efficient manner to harmonise business plan with potentially newly occurred and originally not anticipated circumstances. Most of the business entities are familiar and apply traditional methods of cost management. The goal of this paper is to elaborate contemporary method of cost management - Cost targeting method. Cost targeting method is of a great importance in cost management of the product design and development fazes since those are the fazes where costs re fixes and therefore it is hard to manage them. One of the method's prime emphasises is based on significant importance of the customer and market analyses, competitive analysis whereas depending on overall results the product sales price is formed. In the survey research of this paper it is shown the implementation of the target costing method on the example of business analysis of the corporation “Valamar riviera” LTD.