Target cost : In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost. Formula: Market price – Desired profit =Target cost To indicate : The conditions in which the target cost is focused by companies, and the way to determine target cost.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 2

Question

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Answer 6

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Answer 7

Chapter 8, Problem 2Q

To determine

Target cost: In a competitive market, companies cannot set prices because the supply and demand factors affect the product price. The companies should therefore, control costs, in order to earn a desired profit. Therefore, the cost which should be controlled and fixed by companies to earn a desired profit over the market price, is referred to as target cost.

Formula:

Market price – Desired profit =Target cost

To indicate: The conditions in which the target cost is focused by companies, and the way to determine target cost.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 8 - What are the two types of pricing environments for...Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Benz Corporation produces a filter that has a per...Ch. 8 - What is the basic formula for the markup...Ch. 8 - Prob. 6Q Ch. 8 - Stanley Corporation manufactures an electronic...Ch. 8 - Sheen Co. manufactures a standard cabinet for a...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Solution Summary: The author explains that in a competitive market, companies cannot set prices because supply and demand factors affect the product price. The cost which should be controlled and fixed is referred to as target cost.

Videos

Want to see the full answer?

Chapter 8 Solutions