The target costing method assumes that
A)markup is added to total cost
B)the selling price is set by the marketplace
C)markup is added to variable cost
D)markup is added to product cost

Question

Quizplus · Accepted Answer

The target costing method starts with the selling price that the market will bear and then subtracts a desired profit margin to arrive at a target cost, hence assuming the selling price is set by the marketplace.

The Target Costing Method Assumes That