The Formula for Target Cost Is

question 4

Multiple Choice

The formula for target cost is:

• A)Target cost = Anticipated selling price - Desired profit.
• B)Target cost = Unit cost + (Markup percentage × Unit cost)
• C)Target cost = Units sold × Unit cost traceable to product
• D)Target cost = (Desired return on assets employed + Selling and administrative expenses) ÷ (Units sold × Unit product cost)

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