QUESTION points save Answer A Target Cost is the maximum amount of cost that can be incurred on a product and still earn the required profit margin from that product . Target costing differs from tradition cost plus pricing because it : A Assumes that the company sets market prices while financing sources establish required profit margins B . Assumes that standard industry profit margins can be added to our cost to establish the product's price C . Assumes that market price and profit margins are variables that are set outside the organization and must be achieved ( ) D Assumes that profits margins are sel Internally while cost is derived from an elaborate benchmarking system