target
costing:
Target costing identifies an estimated price that customers
are willing to pay and then computes a target cost to earn the desire profit.
Cost
plus pricing:
Cost plus pricing is a predetermine markup percentage is
applied to cost base to determine the setting price.
Limitation
of cost-plus pricing:
01. This method does not take into accounts the future
demand for a product.
02. It also does not take into account competitor action.
03.it can result in company overestimated the price of a
product because these methods include sun cost.