Determining Costs Can Be Extremely Difficult for a Service Provider

question 76

Multiple Choice

Determining costs can be extremely difficult for a service provider that has adopted this type of pricing objective and may limit the usefulness of the objective. What is the pricing objective?

• A)market share
• B)revenue oriented
• C)patronage oriented
• D)breakeven

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Definitions:

Benefits-received Principle

A taxation theory suggesting that individuals should pay taxes in proportion to the benefits they receive from government services.

Taxation

A process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately impacting those with lower incomes.

Tax Revenues

The money that governments procure from tax collection.