A target cost is computed as
A)the cost to manufacture plus a desired mark up.
B)the cost to manufacture plus the designated selling expenses.
C)the market willingness to pay less the cost to manufacture.
D)the market willingness to pay less the desired profit.

Question

Quizplus · Accepted Answer

Target cost is determined by subtracting the desired profit from the market willingness to pay, focusing on what customers are willing to spend while ensuring profitability.

A Target Cost Is Computed as