Target cost is the selling price assigned to a product or service that allows the company to achieve a desired gross profit level.

Name: Target cost is the selling price assigned to a product or service that allows the company to achieve a desired gross profit level.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Target cost is determined by subtracting the desired profit margin from the competitive market price, aiming to ensure the product can be produced and sold profitably at market rates, not to achieve a desired gross profit level.

Target Cost Is the Selling Price Assigned to a Product