When Target Costing and Target Pricing Are Used Together ________

question 70

Multiple Choice

When target costing and target pricing are used together ________.

• A) the target cost is established first, then the target price
• B) the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit
• C) the focus of target pricing is to undercut the competition
• D) target costs are generally higher than current costs

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