Target Income
Financial Dictionary — Managerial Accounting
Definition
A level of income that is to be obtained; CVP projects activity levels necessary to achieve this benchmark
Detailed Explanation
A level of income to be obtained; CVP analysis projects activity levels necessary to achieve this benchmark.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **Target Income** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.