Asked by Jasmine Hemingway on Jun 21, 2024
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A target selling price can be calculated by deducting the target margin from the target cost.
Target Selling Price
The price at which a company aims to sell its product or service, determined by factors such as cost, market demand, and competition.
Target Margin
The desired profit margin that a company aims to achieve for a product or service, used as a benchmark for pricing and cost management strategies.
Target Cost
The desired cost of manufacturing a product, which is calculated to ensure profitability at a specific selling price.
- Distinguishing between conventional cost control methods and contemporary cost management techniques.
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Learning Objectives
- Distinguishing between conventional cost control methods and contemporary cost management techniques.
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