When Microwave Ovens Were Being Developed in the 1980s,they Represented

Multiple Choice

When microwave ovens were being developed in the 1980s,they represented such a radical concept that the company was unsure about pricing.Early prototypes were large,cumbersome and would need a price tag of thousands of dollars simply to breakeven.With remarkable insight,a new divisional manager took over the project and issued the development team with a very clear design brief.The new microwave was to be shaped like an air-conditioner,should look like an oven,have buttons like an oven and be priced around the same as a conventional oven (at the time around $500) .The company would not commercialise until the development team could design a microwave at this price.This is an example of which type of costing?

A) variable costing
B) cost-plus
C) target costing
D) standard mark up
E) None of the above.