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Target costing determines the desired cost for a product upon the basis of a given competitive price such that the product price:
Break even.
Earn a desired ROI.
Earn the maximum profit.
Earn at least a small profit.
Equals target cost plus desired profit.
Target costing determines the desired cost for a product upon the basis of a given competitive price such that the product price:
Break even. | ||
Earn a desired ROI. | ||
Earn the maximum profit. | ||
Earn at least a small profit. | ||
Equals target cost plus desired profit. |
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