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What is a target cost per unit? A - Target cost per unit is the estimated long-run cost per unit of a product or service
What is a target cost per unit? A - Target cost per unit is the estimated long-run cost per unit of a product or service that enables the company to achieve its target operating income per unit when selling at the target price. Target cost per unit= Target price-Target operating income per unit. Instructors Q So how does a company ensure it achieves its target cost per unit? Criteria If answer is outside of our textbook, please provide your source or reference, if within, provide the page or pages. Reference - Horngren, C. T., Datar, S.M., Foster, G., Rajan, M., & Ittner, C. (2009). Cost Accounting: A Managerial Emphasis (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall, pp. 435-436
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