Correct formulation of the target cost. Formulation of the total target cost through cost forecasting analysis and fixed targets in accordance with the overall goal of cost to the various departments, various aspects of decomposition. Example, cost projections, the total cost of the development of a highway management at year 1000 million, of which the cost of collection 300 million; special conservation project cost 2.8 million yuan, facilities maintenance and road maintenance costs 2.7 million yuan, the cost of administrative expenses of 1.5 million yuan. continue disintegrated before the various cost items, subdivided fixed targets.