A Pricing Strategy Implemented by Firms When They Have a Particular

question 122

Multiple Choice

A pricing strategy implemented by firms when they have a particular profit goal as their overriding concern is called:

• A)maximizing profits strategy.
• B)target return pricing strategy.
• C)customer orientation strategy.
• D)competitive parity strategy.
• E)target profit pricing strategy.

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Definitions:

Carrying Costs

The expenses incurred by holding inventory or assets over a period of time.

Carrying Receivables

The process of maintaining accounts receivable on the balance sheet, which represents money owed to a company by its customers for goods or services delivered.

Incremental Cost

The additional cost that a company incurs when producing one more unit of a product.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, depreciation, and opportunity costs, that a company must consider in its pricing and inventory management strategies.