Which of the following statements is true of target pricing?
A) It starts with the price that customers are willing to pay.
B) It uses the full product cost that a company estimates to arrive at the sales price.
C) It does not consider the nonmanufacturing costs when calculating the target cost.
D) It is the same as cost-based pricing.
A
You might also like to view...
Which of the following would be used to compute the federal income taxes to be withheld from an employee'searnings?
a. FICA tax rate b. wage and tax statement c. FUTA tax rate d. wage bracket and withholding table
If the expected inflation rate was 7 percent and the actual inflation rate was 3 percent, then
A. borrowers gained in real terms at the expense of lenders. B. lenders gained in real terms at the expense of borrowers. C. borrowers and lenders were not affected. D. the government gained because it collected more in taxes.
Discount on Bonds Payable is shown on the balance sheet as a(n)______________
Fill in the blank(s) with correct word
While a differentiated marketing strategy allows a firm to diversify, a major difficulty associated with differentiated marketing is _____
a. the need to create and maintain distinct images b. that a market segment may be cluttered c. that competition is increased d. that one market plan may not adequately cover both segments