Target costs equal which of the following?
A)target prices minus target profits.
B)fixed costs plus variable costs.
C)prime costs plus conversion costs.
D)opportunity cost plus cost of capital.

Question

Quizplus · Accepted Answer

Target costs are the costs that a company aims to achieve while selling its product at a target price and earning a desired target profit. Therefore, target costs can be calculated as target price minus target profit.

Target Costs Equal Which of the Following