Question: A difference in cost - plus pricing and target costing is that target costing is generally determined after introducing a product and cost - plus
A difference in costplus pricing and target costing is that target costing
is generally determined after introducing a product and costplus pricing is determined
before introducing a product.
B is a simple approach while costplus pricing is relatively complex.
C starts with the price customers are willing to pay whereas costplus pricing starts with the
cost
computes the desired markup while costplus pricing computes the maximum cost the
company is willing to incur.
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