In Relation to Target Costing, Which of the Following Best

Multiple Choice

In relation to target costing, which of the following best describes target cost per unit?

A) It is the targeted cost of producing one unit to achieve the current year's budgeted profit.
B) It is the estimated long-run cost of a product that enables the company to achieve its target operating income.
C) It is the cost that can be achieved by ensuring that the company produced its products at maximum efficiency.
D) It is the budgeted cost that the company estimates in producing a unit in the current budget period.