What is target costing describe how costs are reduced so, Finance Basics

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What is target costing describe how costs are reduced so

1. What is target costing? Describe how costs are reduced so that the target cost can be met.

2. STANDARD QUANTITIES ALLOWED OF LABOR AND MATERIALS
Packstar Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 24 ounces of rolled oats per carton (the unit quantity standard) and .05 labor hours (the unit labor standard). During the year, 350,000 cartons of oatmeal were produced.

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