KeyLine, Inc

question 66

Multiple Choice

KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it earns a 20 percent return on investment. Which pricing objective is the company following?

• A) Meet competition
• B) Unit sales growth
• C) Nonprice competition
• D) Target return
• E) Share of market

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Definitions:

Controllable

Controllable usually refers to expenses or costs that can be managed or influenced by decisions made by a company or an individual.

Volume

Refers to the amount of an asset or security that changes hands over a set period of time, commonly used in financial markets to gauge trading activity and liquidity.

Material Variances

The difference between the actual cost of materials used in production and the standard cost of materials that should have been used.

Quantity Variance

The difference between the expected and actual quantity of materials or labor used in a production process.