Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________.
A) mass production
B) cost-plus pricing
C) target costing
D) value-added pricing
E) target return pricing
Answer: C) target costing