Which of the Following Statements Is True of Target Pricing

question 34

Multiple Choice

Which of the following statements is true of target pricing?

• A)It starts with the price that customers are willing to pay.
• B)The full product cost is added to the desired net profit to arrive at a sales price.
• C)It does not consider the nonmanufacturing costs when calculating the target cost.
• D)It is the same as cost-based pricing.

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Definitions:

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