When target costing and target pricing are used together ________.
A) the target cost is established first, then the target price
B) the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit
C) the focus of target pricing is to undercut the competition
D) target costs are generally higher than current costs

Question

Quizplus · Accepted Answer

Target costing involves setting a target cost by subtracting a desired profit margin from a competitive market price, ensuring the product can achieve the desired profit.

When Target Costing and Target Pricing Are Used Together ________