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16 October, 00:02

Which of then following identifies an estimated price customers are willing to pay and then computes the cost to be achieved to earn the desired profit. A. Peak-load costing B. Cost-plus pricing C. Target costing D. Kaizen costing

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  1. 16 October, 00:14
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    C. Target costing

    Explanation:

    Target costing is one that is derived from competitive market price. Various conditions that determine price include homogeneous products, competition level, switching cost, and market conditions.

    Companie's have limited control on market prices, so they engage in proactive costing by using target costing to provide goods at prices consumers are willing to buy, thereby reducing cost.
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Home » Business » Which of then following identifies an estimated price customers are willing to pay and then computes the cost to be achieved to earn the desired profit. A. Peak-load costing B. Cost-plus pricing C. Target costing D. Kaizen costing
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