The target return figure is zero for an organization that sets a price level that will just recover costs.
Answer the following statement true (T) or false (F)
True
Many private and public nonprofit organizations set a price level that will just recover costs, making the target return figure zero.
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Gross margin as a percentage of sales is a common analytical tool for service companies
a. True b. False Indicate whether the statement is true or false
A financial services company has just lost its CFO and is seeking to hire someone for the position. As the CEO goes about the process of looking at applicants, why might she want to hire a cultural relativist?
a. She will want someone who is motivated to achieve a high level of personal success, thus working hard for higher salaries and bonuses. b. She will want someone who adheres to universal ethical principles, thus elevating the public reputation of the company. c. She will need someone who wants the company to operate within the law. d. She will want someone who looks out for the interests of upper management.
If a company wants to be a price-taker, which of the following strategies should be taken?
A) Enter a competitive market and focus on cost cutting. B) Produce a unique product. C) Exploit the value of a fashionable brand name. D) Differentiate the product clearly from the competitors.
Selected information from the accounting records of the Clemens Company is as follows: Net accounts receivable at December 31 . 2013 .......... $ 900,000 Net accounts receivable at December 31 . 2014 .......... 1,000,000 Accounts receivable turnover .......................... 5 to 1 Inventories at December 31 . 2013 ...................... $1,100,000 Inventories at December 31 . 2014
...................... 1,200,000 Inventory turnover .................................... 4 to 1 What was Clemens' gross margin for 2014? a. $150,000 b. $200,000 c. $400,000 d. $500,000