Which of the following works backward from the desired price to find the allowable cost?
A) Step costing
B) Differential costing
C) Target costing
D) Mixed costing
E) Overall costing

Question

Quizplus · Accepted Answer

Target costing is a method that works backward from the desired selling price to determine the allowable cost per unit. This involves analyzing the target market, estimating the price that customers are willing to pay, and then determining the necessary cost structure to meet that price while still achieving the desired profit margin.

Which of the Following Works Backward from the Desired Price