Chapter 25 examines the issues management accountants face in making pricing, target costing, and transfer pricing decisions. The chapter begins by identifying the rules and objectives used to establish prices and relates them to the management cycle. Next, it describes traditional pricing concepts and factors, both internal and external, that affect pricing. Using cost-based pricing methods is the next topic, followed by target pricing. The chapter concludes by discussing transfer pricing and distinguishing between cost-based and market-based transfer pricing. The last subject in this section is the development of a transfer price.