Which pricing approach calculates the amount that can be spent to make a product by determining how much consumers are willing to pay and then subtracting a reasonable profit?
A)skimming
B)cost-based pricing
C)target costing
D)demand-based pricing

Question

Quizplus · Accepted Answer

Target costing starts with the price consumers are willing to pay, subtracts a desired profit margin to determine a target cost, and then aims to produce the product within this cost constraint.

Which Pricing Approach Calculates the Amount That Can Be Spent