Target cost can be defined as:
A) Manufacturing cost - sales price.
B) Competitive price - desired profit.
C) Desired profit - market price.
D) Target price - manufacturing cost.

Question

Quizplus · Accepted Answer

Target cost is defined as the competitive price minus the desired profit. This approach helps companies determine the maximum cost they can afford in designing, producing, and selling a product while still achieving the desired profit margin.

Target Cost Can Be Defined As