Target costing is a ___________ costing methodology, in which the selling price and the required profit margin are used to determine the allowable cost for manufacturing a new/existing product.
A)Modern
B)Reverse
C)Product
D)Process

Question

Quizplus · Accepted Answer

Reverse costing is the methodology where the selling price and required profit margin are used to determine the allowable cost for manufacturing a product, essentially working backwards from the desired market price to ensure profitability.

Target Costing Is a ___________ Costing Methodology, in Which the Selling