Examlex
Return on equity will not change if the firm increases its use of debt.
Target Costing
A pricing strategy where a product's selling price is determined first based on market conditions, and then the goal is to meet or come under this price through cost control and design efficiencies.
Minimum Return
The lowest acceptable rate of return on an investment that a person or company would consider worthwhile.
Investment
The allocation of resources, usually money, in expectation of generating an income or profit.
Target Costing
A pricing method where the selling price is set first, and then the target cost for producing the product is determined by subtracting a desired profit margin.
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