Could you please help me i can’t understand well when calculating target costing Required Profit may be on sales or on cost Kindly clarify for me when when percentage of required profit is on CosT. Thanks
The question always makes it clear which. A margin % is a % of selling price, a mark-up % is a % of cost.
This is explained in our free lectures on target costing (and if you need to revise from F3, then our F3 lectures on mark-ups and margins) – I cannot type out all the lectures here 🙂
Our free lectures for Paper F5 cover everything needed to be able to pass the exam well.