Accounting · Management Accounting
How is target cost calculated in target costing?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Actual cost - desired profit margin
- 2Estimated selling price - desired profit margin✓
- 3Market price - standard profit margin
- 4Desired selling price - actual profit margin
Correct answer
Estimated selling price - desired profit margin
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