In this kind of pricing, a company starts with the price it wants to c

QUESTION

In this kind of pricing, a company starts with the price it wants to charge, figures out the profit margin it wants, then determines what the costs must be to produce the product to meet the desired price and profit goals.

A) discounting
B) target costing
C) bundling
D) everyday low pricing
E) penetration pricing

ANSWER

Answer: B
Explanation: B) In target costing, a company starts with the price it wants to charge, figures out the profit margin it wants, then determines what the costs must be to produce the product to meet the desired price and profit goals.