Target price is subtracted from per unit target operating income to calculate
a. total current full cost
b. total cost per unit
c. target operating income per unit
d. target cost per unit
To answer this question, you must understand each answer choice in the multiple-choice above. So you will find the right answer.
A. total current full cost
Wrong. Because total current full cost is a bad choice for an answer.
B. total cost per unit
It is Wrong Because total cost per unit does not include the correct answer.
C. target operating income per unit
This is also wrong, target operating income per unit Not completely the correct answer.
D. target cost per unit
it is True, because target cost per unit is the best and correct answer to the above question. so, choose this answer.
The Answer From Target price is subtracted from per unit target operating income to calculate
So the correct answer is D i.e. target cost per unit. Hopefully, it can help work on your problem and can add to your insight as well.
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