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Management · Q357

Management Accounting

Graduate and Post Graduate · Management · question 357

Q357

An income, which a company aims to earn by selling each unit of market offering is classified as

A.
target operating income per unit
Answer
B.
target cost per unit
C.
total current full cost
D.
total cost per unit

Answer: Option A

Solution

Answer: Option A
Solution:
An income, which a company aims to earn by selling each unit of market offering is classified as target operating income per unit. Target income is the profit that the managers of a company expect to attain for a designated accounting period.