Which of the following statements regarding target pricing is not correct?

Multiple Choice

The target price is the price based on customers' perceived value for the product and the price that competitors charge.

All of these are correct statements.

Target costing is widely used by companies in the automobile, electronics, and the personal computer industries.

Target cost equals the target price plus the desired profit margin.

Target costing is the concept of "price$-$based costing" instead of "cost$-$based pricing."