All of the Following Are Profit-Oriented Approaches to Select an Approximate

question 82

Multiple Choice

All of the following are profit-oriented approaches to select an approximate price level except which?

• A)target ROI pricing
• B)target profit pricing
• C)target return-on-sales pricing
• D)target return-on-investment pricing
• E)cost-plus-percentage-of-cost pricing

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Definitions:

Step-Down Method

A cost allocation method used in accounting to allocate overhead costs to various cost objects, starting with the department incurring the highest costs.

Service Department Costs

Costs incurred by departments that do not directly produce goods but provide support or services to other units within the organization.

Corporate Law

The body of laws, rules, regulations, and practices that govern the formation, operation, and dissolution of corporations, including their legal rights and obligations.

Personnel Costs

Expenses related to the compensation of employees, including wages, salaries, bonuses, benefits, and payroll taxes.