Target costing sets cost goals for components and finished products by adding the desired profit margin to the estimated market price.

Name: Target costing sets cost goals for components and finished products by adding the desired profit margin to the estimated market price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Target costing starts with the estimated market price and subtracts the desired profit margin to determine the allowable cost for the product, not the other way around.

Target Costing Sets Cost Goals for Components and Finished Products