_____ is the process of determining what the external customer is willing to pay for a product or service and then assigning specific cost targets to the components, assemblies, and systems that make up the product or service.
A)Specific costing
B)Target pricing
C)Total cost analysis
D)Cost avoidance
E)None of these answers.

Question

Quizplus · Accepted Answer

The process described in the question is known as target pricing. Target pricing is a pricing strategy used to determine the expected price points of a product. It involves determining the price point that customers are willing to pay for a product or service and then working backwards to set cost targets for the individual components or assemblies of that product. This process helps to ensure that the product is priced competitively while also ensuring that the company is able to meet its desired profit margins.

_____ Is the Process of Determining What the External Customer