What is a cost target?
A product’s target cost is the expected selling price of the product minus sales/administration expenses and desired profit margin. Effectively, target cost measures the cost level needed to make a certain profit at a competitive market price.
What is the meaning of cost verb?
1 : to require expenditure or payment The best goods cost more. 2 : to require effort, suffering, or loss. transitive verb. 1 : to have a price of Each ticket costs 25 dollars. 2 : to cause to pay, suffer, or lose something Frequent absences cost him his job.
What kind of verb is cost?
Cost is used as a verb to mean to require a payment or to cause the loss of something. Cost has several other senses as a noun and a verb. Cost most often refers to a specific amount of money that a seller wants for the item they are selling.
How do you use verb cost?
cost somebody something to involve you in making an effort or doing something unpleasant The accident cost me a visit to the doctor. Financial worries cost her many sleepless nights. She would never know how much it cost him to tell her.
What is target cost of a product?
Target costing estimates product cost by subtracting a desired profit margin from a competitive market price. As the target cost makes reference to the competitive market, it is fundamentally customer-focused and an important concept for new product development.
What is target cost in construction?
The target cost is the cost to the contractor of completing the project, comprising: the base cost of the physical works (based on the sum of prices in a bill of quantities, schedule of rates or an activity schedule), the cost of temporary works, sub-contractor costs and preliminary costs.
What is the meaning of cost to cost?
Definition of Cost-to-cost Method in construction contracts, is an estimate of completion in which the state of completion is the ratio of costs incurred as of a given date divided by the estimated total project cost. See also PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING.
What is your definition of cost?
Cost denotes the amount of money that a company spends on the creation or production of goods or services. It does not include the markup for profit. From a seller’s point of view, cost is the amount of money that is spent to produce a good or product.
Is cost a action verb?
For example, it costs/cost/has cost me five dollars. However, if you use ‘cost (out)’ as an action verb to mean to determine or estimate how much something will cost you, then you can use costed as past tense and past participle.
What is cost and example?
The definition of cost is the amount paid for something or the expense of doing something. An example of a cost is $3 for a half gallon of milk. noun.
What does target pricing mean?
What is Target Pricing? Target pricing is the process of estimating a competitive price in the marketplace and applying a firm’s standard profit margin to that price in order to arrive at the maximum cost that a new product can have.
What is target cost in procurement?
A target cost contract is a type of cost reimbursable contract under which the contractor is paid the ‘actual cost’ (usually defined in the particular contract) it incurs in carrying out the works, but subject to a target cost which is agreed by the parties at the beginning of the project.
Which is the best definition of target costing?
CIMA defines target cost as “a product cost estimate derived from a competitive market price.” Target Costing = Selling Price – Profit Margin
Which is the best definition of the verb cost?
transitive verb. 1 : to have a price of Each ticket costs 25 dollars. 2 : to cause to pay, suffer, or lose something Frequent absences cost him his job. 3 past costed ˈkä-stəd : to estimate or set the cost of —often used with out The project has yet to be costed out.
What is the legal definition of a target?
Legal Definition of target. : the object to be affected or achieved by an action or development specifically : a company that is the object of a takeover. Keep scrolling for more. Comments on target.
Are there any synonyms for the word target?
Synonyms for target. Synonyms: Noun. aim, ambition, aspiration, design, dream, end, goal, idea, ideal, intent, intention, mark, meaning, object, objective, plan, point, pretension, purpose, thing.