total current full cost
total cost per unit
target operating income per unit
target cost per unit
Answer is Right!
Answer is Wrong!
The correct answer is: D. target cost per unit.
Target cost per unit is calculated by subtracting the per unit target operating income from the target price. This is because the target cost per unit is the amount that a company needs to produce a product in order to achieve its target operating income.
The other options are incorrect because:
- Total current full cost is the total cost of producing a product, including all variable and fixed costs.
- Total cost per unit is the total cost of producing a product divided by the number of units produced.
- Target operating income per unit is the amount of profit that a company wants to make on each unit of a product.