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    Target Costing and Pricing Products

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    Target costing is a little confusing to me. Can anyone help me with this question? What is target costing and how is it used to price products?

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    Solution Preview

    Target costing is a method of developing a product to meet a specific cost goal. Usually, a price is set first, from this the profit is subtracted and the result is the cost objective. The manufacturer then designs the product to meet this cost objective.

    Target costing is ...

    Solution Summary

    This solution discusses target costing and the manner in which it is used for pricing products.