Fidelity Corp

question 143

Multiple Choice

Fidelity Corp.earned a 6 percent return on investment last year and wants to increase it to 10 percent this year.Which of the following pricing objectives is Fidelity seeking?

• A)target return
• B)growth in sales
• C)growth in market share
• D)maximize profits
• E)nonprice competition

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing wear and tear or obsolescence.

Units-of-Production

A method of depreciation that allocates expenses based on the number of units a fixed asset produces, linking the expense directly to the asset's usage.

Asset Costing

The process of determining the original total cost associated with acquiring an asset.

Loss

The amount of money a business loses when its expenses exceed its revenues.