target cost definition

target cost

Contracting: Final agreed-upon cost which serves as a basis for computing cost savings in incentive type contracts.

Costing: Final cost of a product or service that must be achieved in order to generate the desired level of sales revenue and income. See also target costing.

target cost is in the Accounting & Auditing and Agreements & Contracts subjects.

target cost appears in the definitions of the following terms: target costing, cost overrun, cost underrun, incentive-type contract, fixed price incentive contract and standard cost

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