The target cost approach assumes that:

a. markup is added to total cost

b. markup is added to product cost

c. markup is added to variable cost

d. the selling price is set by the marketplace

The target cost approach assumes that the selling price is set by the marketplace

Option D

Explanation:

The demand for a product or service is the ultimate price of the retailer, i. e. the cost the consumer pays. The trade may be in a certain number, weight or metric for a product or service.

This is one of the main factors to be decided by a client. It is necessary because the quality of its survival can be determined. The price of a commodity impacts its sales directly.

We may set a minimum, limit or combination of these two rates. Depending on the time of the year again, season, area, demand and industry, prices can be determined. It's also a great idea to see what our rivals do. Selling prices may be influenced by legislation and national or local rules.