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A difference in cost-plus pricing and target costing is that target costing

brettlaw

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A difference in cost-plus pricing and target costing is that target costing

A difference in cost-plus pricing and target costing is that target costing

▸ is a simple approach while cost-plus pricing is relatively complex.

▸ starts with the price customers are willing to pay whereas cost-plus pricing starts with the cost.

▸ is generally determined after introducing a product and cost-plus pricing is determined before introducing a product.

▸ computes the desired markup while cost-plus pricing computes the maximum cost the company is willing to incur.

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Managerial Accounting

Edition: 4^th

Author: Davis

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