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The target cost is __________. ANSWER Unselected reevaluating activities to reduce costs while satisfying customer needs Unselected the amount a customer is willing to pay for a good or service Unselected the maximum cost to develop, produce, and deliver the product or service and earn the desired profit Unselected the minimum cost to develop, produce, and deliver a good or service Unselected I DON'T KNOW YET

Respuesta :

Answer:

the maximum cost to develop, produce, and deliver the product or service and earn the desired profit

Explanation:

Target Cost is Selling Price – Profit Margin

Target Cost = Selling Price – Profit Margin

Features of target cost

1. The price at which the good and service is sold is determined by market conditions

2. Cost reduction is the difference between current cost and target cost

Advantages if target cost

1. It ensures that a product being created is profitable

2. Due to the fact that the product is developed in line with consumers wants, it increases the sales of the product

Disadvantage of target costing

1. If cost estimate is wrong, it can lead to failure of the venture

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