Target Costing Adds a Profit Margin to Estimated Cost of Production

question 345

True/False

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

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Definitions:

Assignor

The party in a contract who transfers their rights or interests to another party, known as the assignee.

Assignee

An individual or entity to whom rights or obligations are transferred from another party.

Obligor

An individual or entity legally bound to fulfill an obligation, such as paying a debt.

Obligor

A person or entity legally bound to provide a payment, service, or other benefit to another, known as the obligee.