Target total cost is defined as
A)cost of goods sold less desired profit.
B)revenue at market price less desired profit.
C)revenue at market price less variable costs.
D)revenue at market price less fixed costs.

Question

Quizplus · Accepted Answer

Target total cost is defined as the revenue at market price less the desired profit. This concept is used in target costing to determine the maximum cost that can be incurred on a product, while still earning the desired profit margin when the product is sold at its market price.

Target Total Cost Is Defined as