The target costing method assumes that

A) markup is added to total cost
B) the selling price is set by the marketplace
C) markup is added to variable cost
D) markup is added to product cost

Target Costing

A method of price setting that combines market-based pricing with a cost-reduction emphasis; the target cost is the expected selling price less the desired profit.

Marketplace

A platform or environment where buyers and sellers engage in exchange of goods and services. It can be physical or digital.