Examlex
The target costing approach was developed in recognition of two important characteristics of markets and costs. First, many companies have less control over price than they like to think. Second, most of a product's cost is determined when it is designed.
Unlevered Cost
The cost of capital that a company faces before taking into account the effects of debt financing.
Pre-Tax Cost
The expense or cost that a company incurs before adjusting for taxes.
Total Equity
Total equity refers to the amount of owner's interest in a company, calculated as the difference between total assets and total liabilities.
Unlevered Rate
The unlevered rate refers to the return on an investment or the cost of capital without considering the impact of financial leverage, representing the risk of an investment independent of its capital structure.
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