The cost gap is the difference between a product's:
A) Value proposition and selling price.
B) Target cost and estimated cost.
C) Standard cost and actual cost.
D) Target price and expected profit.

Question

Quizplus · Accepted Answer

The cost gap refers to the difference between the target cost (what a company aims to spend on producing a product) and the estimated cost (what the company actually expects to spend based on current data). This gap indicates how much a company needs to reduce its costs to meet its target.

The Cost Gap Is the Difference Between a Product's