Target income refers to:
A)Income at the break-even point.
B)Income from the most recent period.
C)Income planned for a future period.
D)Income only in a multiproduct environment.
E)Income at the minimum contribution margin.

Question

Quizplus · Accepted Answer

Target income refers to the amount of income that a company plans to achieve in a future period. It is typically used in budgeting and planning processes as a goal for the company to work towards. It is not the same as income at the break-even point (A) or income from the most recent period (B). It can be calculated in a multiproduct environment, but this is not a requirement (D). It is also not the same as income at the minimum contribution margin (E).

Target Income Refers To