COST MANAGEMENT: CONNECT ACCESS CUSTOM
COST MANAGEMENT: CONNECT ACCESS CUSTOM
8th Edition
ISBN: 9781264045754
Author: BLOCHER
Publisher: MCG CUSTOM
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Chapter 13, Problem 1Q
To determine

Explain the meaning of target cost.

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Explanation of Solution

Explain the meaning of target cost as follows:

Target costing is a method by which the estimated cost of the product is calculated on the basis of sustainable price of the marketplace (competitive market price), hence that the company can calculate the desired profit of the product.

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