Whereas cost-plus pricing starts with the cost, target costing starts with the price customers are willing to pay.

Name: Whereas cost-plus pricing starts with the cost, target costing starts with the price customers are willing to pay.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Target costing is a pricing strategy that begins with the price at which customers are willing to buy a product, and then works backwards to determine the cost that the company can afford to manufacture and still make a profit.

Whereas Cost-Plus Pricing Starts with the Cost, Target Costing Starts