Management accounting information helps managers calculate a target cost for the product's selling price by subtracting the operating income per unit of product that the company desires to earn from the sale of the product [target price].

Question

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This statement is true. Management accounting information can be used to help managers calculate a target cost for a product's selling price. This is done by subtracting the desired operating income per unit from the expected selling price (target price).

Management Accounting Information Helps Managers Calculate a Target Cost for the Product's