Target costing for target pricing is
A) a cost-based approach.
B) a market-based approach.
C) similar to the cost-plus pricing method.
D) used where products are distinct, and companies set their own prices.

Question

Quizplus · Accepted Answer

Target costing for target pricing is a market-based approach where the company determines the desired price based on market conditions and then works backward to ensure costs allow for profitability at that price.

Target Costing for Target Pricing Is