Target costing is arrived at by
A) taking the selling price and subtracting desired profit.
B) taking the selling price and adding desired profit.
C) taking the selling price and subtracting the budget standard cost.
D) taking the budget standard cost and reducing it by 10%.

Question

Quizplus · Accepted Answer

Target costing is determined by taking the selling price and subtracting the desired profit to ensure that the product can be produced at a cost that allows for the desired profit margin.

Target Costing Is Arrived at by