The Strategy of First Determining What the Market Is Willing

question 117

Multiple Choice

The strategy of first determining what the market is willing to pay,then subtracting a desired profit margin to determine a desired cost of production is called:

• A)cost-based pricing.
• B)penetration pricing.
• C)target costing.
• D)skimming pricing.

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Definitions:

Security

A document or other thing that stands as evidence of title to or interest in the capital, assets, property, profits, earnings, or royalties of any person or company, including any document commonly known as a security.

Chattel Mortgage

A legal arrangement where personal property is used as security for a loan, without the borrower surrendering possession of the property.

Secured Creditor

A lender who is given a specific asset as collateral for a loan, providing them with the right to claim said asset if the borrower defaults.

Sale Proceedings

The process and actions taken to complete the sale of assets, including the distribution of the proceeds from the sale.