Relevant costs for target pricing are ________.
A) variable manufacturing costs
B) variable manufacturing and variable nonmanufacturing costs
C) all fixed costs
D) all future costs, both variable and fixed

Question

Quizplus · Accepted Answer

Target pricing involves setting a price based on what the market will bear and then subtracting a desired profit margin to determine allowable costs. This approach considers all future costs, both variable and fixed, to ensure the product can be produced within the cost constraints to achieve the target profit.

Relevant Costs for Target Pricing Are ________