_____ 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 the above.

Question

Quizplus · Accepted Answer

Target pricing is the process of determining the price that the customer is willing to pay and then working backward to determine specific cost targets for each component of the product or service. This allows companies to ensure that they are able to provide the product or service at a competitive price while still maintaining profitability.

_____ Is the Process of Determining What the External Customer