Which Equation Better Describes Target Costing

question 62

Multiple Choice

Which equation better describes Target Costing?

• A) Selling Price - Desired Profit = Target Costs
• B) Selling Price + Profit = Target Costs
• C) Target Variable Costs + Contribution Margin = Selling Price
• D) Selling Price = Profit - Target Variable Costs

---

Definitions:

Opportunities

Situations or conditions that present chances for advancement or success.

Peers

Individuals who are of approximately the same age, social status, or interest group, often influencing each other’s behaviors and beliefs.

Child Maltreatment

Behavior towards a child that is outside the norms of conduct and entails substantial risk of causing physical or emotional harm.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.