The target cost for a job using job costing is calculated as:
A) expected selling price - desired profit.
B) direct costs + desired profit.
C) direct costs - desired profit.
D) expected selling price + desired profit.
E) expected selling price - direct costs.

Question

Quizplus · Accepted Answer

The target cost is determined by subtracting the desired profit from the expected selling price. This ensures that the cost of the job aligns with the profit goals and market pricing.

The Target Cost for a Job Using Job Costing Is