The technique that allows company to determine the price which helps in yielding targeted return on investment is classified as ___________?
Correct answer: B. target return pricing
- A. markup pricing
- B. target return pricing
- C. target return costing
- D. markup costing
Explanation
Target-return pricing sets a price by adding the return desired on the investment to the cost and expected sales volume. Markup pricing simply adds a standard percentage to cost and does not specifically target ROI.
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