Question 5 When pricing products, many companies use target costing and/or cost-plus pricing methods. Required: (a) Critically explain how target costing is applied to new products. Provide an example of how a company has successfully used the target costing method. (8 marks) (b) Compare and contrast between target costing and cost-plus pricing. (8 marks) (d) Can an activity-based costing system be used with target costing? Critically evaluate your answer. (9 marks) (Total: 25 marks)