Which of the Following Is an Example of a Common

question 167

Multiple Choice

Which of the following is an example of a common pricing objective?

• A) maximized targeting
• B) target return on investment
• C) target marketing
• D) profit optimization

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Definitions:

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost, ensuring all costs are covered and a profit is guaranteed.

Absorption Cost

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead.

Mark-Up Percentage

Mark-up percentage is the ratio between the cost of a good or service and its selling price, expressed as a percentage over the cost, indicating the profit margin.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment compared to its initial cost.