Setting a Price to Achieve a Profit That Is a Specified

question 199

Multiple Choice

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as

• A) target return-on-investment pricing.
• B) target return-on-sales pricing.
• C) loss-leader pricing.
• D) target pricing.
• E) standard markup pricing.

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Definitions:

Wages Payable

An account that records the amounts owed to employees for work performed that have not yet been paid.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.

Capital Stock

The total amount of a company's shares that are authorized for issuance, representing the ownership of the company.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, debt, and paying dividends.