The easy answer to this one is: Yes.
They do all of those things. They get price point assignments as well, so someone will tell them to build this and make it have a $20 retail value.
I've sat in on workshops where people from other themes come in and build and stuff like that happens a bunch. For the most part though, people are given a price point, they develop their concept, and then they start building until it meets all of the standards set up by their internal model committees.