The _____ is estimated as the difference between the expected selling price and the desired profit.
A) target cost
B) product cost
C) sunk cost
D) opportunity cost

Question

Quizplus · Accepted Answer

Target cost is the estimated cost that a company projects to incur in order to produce a new product, calculated as the expected selling price minus the desired profit. It involves determining what customers are willing to pay and then working backward to determine what the product should cost to ensure profitability.

The _____ Is Estimated as the Difference Between the Expected