Loose Leaf for Cost Management: A Strategic Emphasis
Loose Leaf for Cost Management: A Strategic Emphasis
8th Edition
ISBN: 9781260165180
Author: BLOCHER, Edward; Stout, David F.; Juras, Paul; Cokins, Gary
Publisher: McGraw-Hill Education
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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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