The Product Strategy in Which Companies First Determine the Price

question 146

Multiple Choice

The product strategy in which companies first determine the price at which they can sell a new product and then design a product that can be produced at a low enough cost to provide adequate operating income is referred to as ________.

• A) cost-plus pricing
• B) target costing
• C) kaizen costing
• D) full costing

---

Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Event

An occurrence or happening, especially one of significance, that can be observed or participated in.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Green Party

A political party that emphasizes environmental issues, social justice, and sustainability, often advocating for green policies.