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How is target cost determined?

Updated: 12/4/2022
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Q: How is target cost determined?
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What is target cost and how is it determined?

Target cost is the maximum or target price of product on which product is sell and it is determined by competitors or market condition and then company tries to reduce it unnecessary costs to acheive target price.


How much does a dsi cost at target?

A Dsi cost $149.99 at Target...


How is target costing used to price products?

traditionally cost plus procedure were used means at the time of pricing the product we accumulated the cost(direct material+direct labor+direct expenses+variable production OH+fixed production OH)that has to be incurred in order to produce the product and determined the cost per unit and then add the profit margin to reached at the selling price this method of costing is precised for its simplicity but in 1960 the concept of target costing were introduced which tells us the opposite approach as compared to the traditional costing in target costing we starts from the market survey and determine at what selling price costumer is agree to buy the product which we want to produce after determining the selling price of the product we subtract the desired profit which we want to achieve from it(competitive selling price-desired profit=target cost) after subtracting the desired profit from the selling price we left with the cost termed as the TARGET COST. after setting of the target cost we look all the budgeted cost if budgeted cost is greater than the target cost we apply all the cost saving techniques to control the budgeted cost and keep the budgeted cost into the limits of target cost... (ANSWERED BY ARSALAN IDREES)


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Cost?

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What is the differences between standard cost and marginal cost?

The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.


What is the difference between marginal cost and standard cost?

The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.


What is target strength of concrete?

Target strength is the design strength which is determined by whom ever designed mixture of aggregates and the water/cement ratio.


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Is target a low cost strategy company?

"Yes"Target is a low strategy company


How much does Jenga cost?

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