Cost-plus pricing is essentially the opposite of target-costing.

Name: Cost-plus pricing is essentially the opposite of target-costing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost-plus pricing involves setting a price based on the cost of producing a product, while target costing involves setting a target price and working backwards to determine the cost that the product must be produced at in order to achieve that price. Therefore, they are opposite pricing strategies.

Cost-Plus Pricing Is Essentially the Opposite of Target-Costing