A. target net cost
B. target net income
C. target net gain
D. target net loss
✅ The correct answer is option B.
Target operating income is multiplied to tax rate and then subtracted from target operating income to calculate target net income. Target income is the profit that the managers of a company expect to attain for a designated accounting period.
Target operating income is multiplied to tax rate and then subtracted from target operating income to calculate target net income. Target income is the profit that the managers of a company expect to attain for a designated accounting period.