When a company sets a price for a new product on the basis of what it thinks

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When a company sets a price for a new product on the basis of what it thinks the product should cost, then develops estimates on what each component should cost to meet the proposed price with an acceptable profit margin, the company is practicing:

a. predatory pricing.

b. target costing.

c. strategic pricing.

d. low-cost leadership.

Related Book For answer-question

Cornerstones of Financial and Managerial Accounting

ISBN: 978-0324787351

1st Edition

Authors: Rich Jones, Mowen, Hansen, Heitger

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Posted Date: Mar 15, 2022 08:00 PM

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When a company sets a price for a new product on the basis of what it thinks

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b target costing Explanation Target costing is a method of determ... View the full answer

Cornerstones of Financial and Managerial Accounting

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