In Which Type of Pricing Is the Selling Price Based

question 87

Multiple Choice

In which type of pricing is the selling price based on an estimate of volume or quantity a firm can sell in different markets at different prices?

• A)capacity management
• B)target costing
• C)demand-based
• D)penetration
• E)distribution-based

---

Definitions:

Future Amount

The value of a current asset or amount of money at a specified date in the future, based on expected growth or interest rates.

Accrued Liability

Expenses that have been incurred but not yet paid for, recognized in the financial statements under the accrual basis of accounting.

Contingent Liability

A potential obligation that may arise from a past event, the outcome of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events.