When target costing and target pricing are used together

Select one:

A. the target cost is established first, then the target price.

B. the target cost per unit is the estimated long-run price per unit that enables a product or service to achieve the target profit per unit.

C. target price is the estimated price for a product or service that a potential customer will be willing to pay.

D. the target price is set to undercut the competition.

E. target costs are higher than current costs because of inflation over time.