________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.
A) Price discrimination
B) Price leadership
C) Target costing
D) Cost-based pricing

Question

Quizplus · Accepted Answer

Target costing involves setting a target cost for a product and designing it in a way that satisfies the customer's needs and expectations while ensuring that the desired profit margin is met. It is a customer-driven approach where the price of the product is determined by the customer's willingness to pay, rather than the cost of production. This approach helps firms to reduce costs and provide products that are priced competitively in the market.

________ Involves Designing a Product So That It Satisfies Customers