________ starts with the estimated product costs and next adds the expected profit margin.
A)Cost-plus pricing
B)Target costing
C)Kaizen costing
D)Standard costing

Question

Quizplus · Accepted Answer

Cost-plus pricing is a pricing strategy where a company starts with the estimated product costs and adds a markup or profit margin to determine the selling price. This allows the company to ensure that their costs are covered and also make a profit on each sale. Target costing, on the other hand, starts with the desired selling price and then subtracts the expected profit margin to determine the allowable cost of the product. Kaizen costing is a continuous improvement approach to cost management that focuses on reducing costs over time. Standard costing is a method of assigning costs to products and services based on predetermined standard rates. None of these methods start with the estimated product costs and add the expected profit margin like cost-plus pricing.

________ Starts with the Estimated Product Costs and Next Adds