Question

Target costing: Determines cost based on an expected market demand for the product. Determines cost based on standard cost. Determines cost based on a budget. Determines cost based upon market price and desired profit.

Answer 1

Determines cost based upon market price and desired profit.

Step-by-step explanation:

Target costing can be regarded as an approach that allows to know

cost of a product through its life-cycle. It enables to know the cost needed to ensure functionality as well as quality of the product with a desired profit at the end of production. It should be noted that Target costing Determines cost based upon market price and desired profit.