The Formula to Determine Target Cost Is as Follows

question 82

Multiple Choice

The formula to determine target cost is as follows:

• A) Target cost = Price - Required profit margin
• B) Target cost = Price - Direct costs
• C) Target cost = Price - Required ROI
• D) Target cost = Price - Indirect costs

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Definitions:

Product Line

A group of related products marketed under a single brand name that are often used together or cater to a similar market segment.

Closely Related

Items or concepts that are very similar or connected in nature or function.

Same Customer Group

Targets the identical demographic or market segment, focusing on consumers with similar needs, interests, or characteristics.

Product Lines

A group of related products marketed under a single brand name by a company, often serving a similar function or targeted at a specific market segment.