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
Use cases, Example & Why it matters
Use cases
- 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.
Example
- Example: Teams reference **Target Income** when defining terms in manuals, policies, or training materials.
Why it matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.