A Major Advantage of the Target Costing Approach to Pricing

Multiple Choice

A major advantage of the target costing approach to pricing is that target costing

A) allows a company to analyze the potential profit of a product before spending money to produce the product.
B) is not dependent on customers' quality-versus-price decisions.
C) identifies unproductive assets.
D) anticipates the product's profitability midway through its life cycle.