{"id":54064,"date":"2024-04-16T00:03:48","date_gmt":"2024-04-16T00:03:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54064"},"modified":"2024-04-16T00:03:48","modified_gmt":"2024-04-16T00:03:48","slug":"target-price-is-subtracted-from-per-unit-target-operating-income-to-calculate","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/target-price-is-subtracted-from-per-unit-target-operating-income-to-calculate\/","title":{"rendered":"Target price is subtracted from per unit target operating income to calculate"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;total current full cost&#8221; option2=&#8221;total cost per unit&#8221; option3=&#8221;target operating income per unit&#8221; option4=&#8221;target cost per unit&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: D. target cost per unit.<\/p>\n<p>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.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>Total current full cost is the total cost of producing a product, including all variable and fixed costs.<\/li>\n<li>Total cost per unit is the total cost of producing a product divided by the number of units produced.<\/li>\n<li>Target operating income per unit is the amount of profit that a company wants to make on each unit of a product.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;total current full cost&#8221; option2=&#8221;total cost per unit&#8221; option3=&#8221;target operating income per unit&#8221; option4=&#8221;target cost per unit&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-54064","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Target price is subtracted from per unit target operating income to calculate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/target-price-is-subtracted-from-per-unit-target-operating-income-to-calculate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Target price is subtracted from per unit target operating income to calculate\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;total current full cost&#8221; 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