The main aim of the diploma thesis was the application method of calculation of Target costs in the company JM – Kuchyne, Bánov. The work is divided into two parts.In the first part we focus on the analysis of the theoretical knowledge. The issue of the Target Calculation methodology, its creation,key features, the determination of the Target cost index and its advantages and limitations. At the beginning of the second part, we briefly characterize JM – Kuchyne and the cost tracking of this enterprise. Subsequently we go to the application of the target calculation methodology it self, we characterize the kitchen line based on customer requirement, which we odtained on the basis of the questionnaire survey. Out put of this section will be the overall assessment and formulation of proposals to improve and reduce costs.