What Are Target Costs in Cost Center Accounting and Why Should You Calculate Them?

What Are Target Costs in Cost Center Accounting and Why Should You Calculate Them?

Published: 15/March/2004

Reading time: 12 mins

Many reports that monitor cost center performance are incomplete because they account for the planned output rather than the actual output of the cost center. The author demonstrates how to use adjusted costs called target costs. Calculating target costs will provide you with a report that more accurately reflects the performance of your cost centers….

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