A Difference in Cost-Plus Pricing and Target Costing Is That

question 123

Multiple Choice

A difference in cost-plus pricing and target costing is that target costing

• A)is generally determined after introducing a product and cost-plus pricing is determined before introducing a product.
• B)is a simple approach while cost-plus pricing is relatively complex.
• C)starts with the price customers are willing to pay whereas cost-plus pricing starts with the cost.
• D)computes the desired markup while cost-plus pricing computes the maximum cost the company is willing to incur.

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