________ starts with estimated product costs and next adds desired operating income.
A)Cost-plus pricing
B)Target costing
C)Kaizen costing
D)Life-cycle budgeting

Question

Quizplus · Accepted Answer

Cost-plus pricing is a pricing method wherein the company starts with the estimated product costs and adds a desired operating income to determine the selling price. Target costing, on the other hand, starts with the desired selling price and subtracts estimated product costs to determine the allowable costs. Kaizen costing is a continuous improvement approach that focuses on reducing costs through small incremental changes. Life-cycle budgeting involves evaluating the costs and revenues of a product over its entire life cycle.

________ Starts with Estimated Product Costs and Next Adds Desired