Final answer:
The statement about management accounting information is true as it is used to calculate a target cost by subtracting the desired net income from the target price to ensure profitability.
Step-by-step explanation:
The statement that management accounting information helps managers calculate a target cost for a product by subtracting from the target price the net income per unit that the company wants to earn is TRUE. In management accounting, setting a target cost is an essential aspect of cost management and pricing strategy.
To calculate the target cost, companies determine the target price based on market conditions and then subtract their desired net income per unit. This method ensures the product price covers all the costs and achieves the planned profit margin. Revenue is influenced by the demand for the products and understanding total cost, which includes all costs associated with production, is crucial for this calculation. Additionally, recognizing that average total cost affects profitability is key, as a firm will earn profits if its average cost of production is below the market price.