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.

Verified Answer

Final Answer :

False

Explanation :

A target selling price is calculated by adding the target margin to the target cost, not deducting it.

Learning Objectives

Distinguishing between conventional cost control methods and contemporary cost management techniques.