Target Costing Explained (ROI vs Profit Margin Made Simple)
Автор: Accountify Lab
Загружено: 2025-12-22
Просмотров: 9
Описание:
In this video, I explain target costing step by step using a simple pizza oven example.
Many students get confused by this formula because the 25% is NOT a sales profit margin — it is a return on investment (ROI) requirement.
In this video, you will learn:
What target costing really means
Why ROI is used instead of profit margin on sales
How to calculate target cost step by step
How to compare target cost vs as-if cost
How managers decide whether to proceed with a new product
This explanation is designed for:
Accounting students
CPA / CMA candidates
Anyone learning managerial accounting
If this video helps you understand target costing clearly,
please like, subscribe, and check out my other accounting videos.
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