When using a target costing approach,the company starts with revenue at market price,and then subtracts its desired profit,to yield the target total cost.

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This is true. Target costing is a cost management approach in which a company sets a predetermined target cost for a product or service based on the price at which it can be sold in the market, while still achieving a desired profit margin. Essentially, the company works backwards from the market price (revenue) to determine the maximum cost it can incur in order to achieve its profit goal.

When Using a Target Costing Approach,the Company Starts with Revenue