Question: In contrast to the total product and variable cost concepts used in setting selling prices, the target cost approach assumes that: a. a markup is

In contrast to the total product and variable cost concepts used in setting selling prices, the target cost approach assumes that:

a. a markup is added to total cost.

b. selling price is set by the market price.

c. a markup is added to variable cost.

d. a markup is added to product cost.

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