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Sagot :
Final answer:
Target costing is a pricing strategy that involves determining market prices and subtracting desired profit margins to derive production costs.
Explanation:
Target costing is the strategy of first determining what the market is willing to pay and then subtracting a desired profit margin to determine a desired cost of production.
This method enables a business to strategically set prices based on market expectations while ensuring a specified profit margin.
By applying target costing, companies can align their pricing strategies with market demands for optimal profitability.
Learn more about Target costing here:
https://brainly.com/question/44668359
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