• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Revision Mock Exam Question – Target Cost Gap

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Revision Mock Exam Question – Target Cost Gap

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 29, 2014 at 2:46 pm #214427
    Marianne
    Member
    • Topics: 14
    • Replies: 17
    • ☆

    Target Selling Price $20 per unit
    Target profit margin 30%
    Estimated production cost $16 per Unit

    What is the target cost gap?

    The answer is $2! How did they get this?

    November 29, 2014 at 4:43 pm #214461
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    I assume that you have watched the lectures, in which case you will know that the target cost is the difference between the estimated actual cost and the target cost.

    The target cost is 20 – 30% = $14.

    The estimated actual cost is $16.

    You can calculate the cost gap yourself 🙂

    November 29, 2014 at 4:45 pm #214462
    Marianne
    Member
    • Topics: 14
    • Replies: 17
    • ☆

    When I see it now, I don’t why in the world it was confusing me so much, as up until now I had understood Target cost gaps. Thanks very much John for all your help!

    November 29, 2014 at 5:17 pm #214476
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    You are welcome, Marianne 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • manahylilyas on The financial management environment – ACCA Financial Management (FM)
  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in