Which of the Following Organizations Is Likely to Use the Multiple-Factor

question 134

Multiple Choice

Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential?

• A) a firm that manufactures auto parts
• B) a firm that provides facility management services to large offices
• C) a company that provides Web site development services for small businesses
• D) a company that manufactures diagnostic machines for hospitals
• E) a firm that manufactures fashionable clothes for teenagers

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Target Costing

A pricing method that involves determining a product's selling price and then subtracting desired profit to arrive at a target production cost.

Target Costing

A pricing strategy where the selling price of a product is determined first, and then the manufacturing cost is managed to meet that target price.

Price Control

Government or company policies aimed at regulating or setting prices for goods and services in a market.