Question

When Panasonic considers how to price a new product, the company determines what price it thinks its customers will pay, and then identifies what profit the company needs. From there the company determines the features it can offer on this product. This method of determining price is known as

Answer 1

b) target costing.

Step-by-step explanation:

Target cost refers to the costing in which the firm is able to reduce its product price during the new development of product process

It could be estimated by

= Market price - expected profit margin

It always be customer focused

As in the given situation, it is mentioned how to determined the price, what actually customer would pay, and the needed profit

So this price determination refers to the target costing