________ identifies an estimated price customers are willing to pay and then computes the cost to be achieved to earn the desired profit.
A) Cost-plus pricing
B) Target costing
C) Kaizen costing
D) Peak-load costing

Question

Quizplus · Accepted Answer

Target costing identifies what customers are willing to pay and then sets the cost to be achieved to earn the desired profit. Cost-plus pricing adds a markup percentage to the cost of producing a product or service, while Kaizen costing focuses on continuous improvement and reducing costs over time. Peak-load costing is a method of pricing based on peak demand periods.

________ Identifies an Estimated Price Customers Are Willing to Pay