An estimated cost per unit in long run, which enables company to achieve it's per unit target, operating income is classified as

An estimated cost per unit in long run, which enables company to achieve it's per unit target, operating income is classified as Correct Answer target cost per unit

An estimated cost per unit in long run, which enables company to achieve it's per unit target, operating income is classified as target cost per unit. The target cost of a product is the expected selling price of the product minus the desired profit from selling it. In other words, target cost is really a measure of how low costs need to be to make a certain profit.
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