Marketers Often Determine How Much Potential Customers Are Willing to Pay

question 176

True/False

Marketers often determine how much potential customers are willing to pay for a product and then price it accordingly.This pricing strategy is called target costing.

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Definitions:

JIT

Just-in-Time is a management strategy that aligns raw-material orders from suppliers directly with production schedules, aiming to reduce inventory costs.

Setup Costs

Setup Costs are the expenses incurred to prepare equipment, machinery, or systems for a manufacturing process or a batch of production.

Inventory

Represents the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Basic Commodities

Products or raw materials that are fundamental to an economy or production process, often with minimal processing or refinement.