What is target cost?
A)Expected sales per unit - desired profit per unit
B)Expected costs per unit - desired profit per unit
C)Desired profit per unit - expected costs per unit
D)Desired costs per unit - expected costs per unit

Question

Quizplus · Accepted Answer

Target cost is calculated by subtracting the desired profit per unit from the expected sales price per unit. This helps companies determine how much they can afford to spend on producing a product while still achieving their profit goals.

What Is Target Cost