target costing

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April 12, 2016 at 5:44 pm #309920
mujahidaslam
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god evening sir in chapter 2 exam practice questions in question 2 you are asking for the target cost but the answer which is given which is 50 is i guess the cost gap where as in my knowledge the targert cost is 250 please correct me if im wrong thank you and lease make me clear thnk you
April 13, 2016 at 7:09 am #309957
John Moffat
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The selling price is 300, and the required profit is 250.

Therefore the target cost is 50.

(It is impossible to calculate the cost gap anyway because the question does not give the expected cost)
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