The aim of diploma thesis was the application of the target costing for the selected product on the company Niva Expo Ltd. The diploma thesis is divided into two parts. In the theoretical part we characterized concepts of target costing, target price, profit and costs and the index of target costs. In the second part we analyzed the selected company and product. Then we applied target costing in the company for the product Doors – standard film based on customers preferences. At the end of this part, we evaluate the results and propose necessary measures to optimize costs. The diploma thesis shows the result, that the company insufficiently monitors its costs and measures must be taken in order to reduce costs of product components.