An income, which a company aims to earn by selling each unit of market offering is classified as ____________?
Correct answer: A. target operating income per unit
- A. target operating income per unit
- B. target cost per unit
- C. total current full cost
- D. total cost per unitFinance
Explanation
Target operating income per unit is the profit a company plans to earn from selling one unit of its offering. Target cost per unit is the maximum allowable cost after subtracting this desired income from the target 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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