Question

A target income refers to: ?a. income at the break-even point.?b. income from the most recent period.?c. income planned for a future period.?d. income only in a multiproduct environment.?e. income at the minimum contribution margin.

Answer 1

The target income refers to the income planned for the future. The answer is letter C. This type of income is expected by the management at a given specified accounting period. This now would direct the key functions of the management in relation to the action that it will do to achieve the certain income.