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
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F5 Target Costing
10y ago#1The 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.
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