Which of the following statements concerning the approach of target costing is correct?

a. This approach is based on the observation that the firm should set its price so as to be able to cover its costs.

b. This approach is based on the principle that the firm should devote resources to effectively market the product to improve profitability.

c. This approach is based on the principle that the firm should first determine the appropriate price for its product and then design and produce the product to achieve the cost that would lead to the desired profit.

d. This approach is based on the observation that the cost of the product cannot be calculated until it has been produced.