Target costing for target pricing
A) starts with the price and then subtracts the plus, or markup, to determine the target cost per unit.
B) starts with the cost per unit and adds the plus, or markup, to determine the unit selling price.
C) is used for products and services where a competitive market does not exist.
D) is used when products are unique in nature and firms can influence price-setting.

Question

Quizplus · Accepted Answer

The Answer of Target costing for target pricing
A) starts with the price and then subtracts the plus, or markup, to determine the target cost per unit.
B) starts with the cost per unit and adds the plus, or markup, to determine the unit selling price.
C) is used for products and services where a competitive market does not exist.
D) is used when products are unique in nature and firms can influence price-setting.

Target Costing for Target Pricing