- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Target Costing (Test-5)
Dear Sir,
Can u pls explain how the Target Costing calculated ?
What does this mean “mark-up is 20% of cost ???
I checked the answers at the back of notes but still dont understand why TC calculated as 100/120×600 ???
please explain.
Thanks.
For every 100 cost,the profit is 20 and therefore the selling price is 120.
Or, writing it the other way round, for every 120 selling price the cost is 100.
So if the selling price is 600 then the cost is 100/120 x 600
Thank you sir, I got it now.
You are welcome 🙂