An estimated price, which is expected to be paid by customers for particular market offering is classified as __________?
Correct answer: A. target price
- A. target price
- B. target cost
- C. outsource price
- D. off shore price
Explanation
A target price is the amount a company expects customers to pay for a market offering. Target cost is then derived by subtracting the desired profit from this expected selling price.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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