For a company using target costing, market price minus profit equals target price.

O True O False

Question

Business

Clinton Suarez

14 February, 01:05

For a company using target costing, market price minus profit equals target price.

O True O False

+4

Answers (1)

Know the Answer?

Cole Mcgrath · Answer 1

For a company using target costing, market price minus profit equals target cost and not target price.

The correct answer is False

Explanation:

Target cost is the excess of market price over target profit margin. In target costing, the company does not fix the selling price because selling price is determined by the market.

For a company using target costing, market price minus profit equals target price.O True O False

For a company using target costing, market price minus profit equals target price.

O True O False