Target Pricing Refers to

question 209

Multiple Choice

Target pricing refers to

• A) a method of selecting specific prices wholesalers and retailers are willing to pay based upon the elasticity of each given item.
• B) a method of charging different prices to maximize revenue for a set amount of capacity at any given time.
• C) the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
• D) a method of estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers.
• E) a method of determining how much wholesalers wish to charge its customers, deliberately adjusting the composition and features of the product to achieve the price to consumers.

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Definitions:

Cost Centers

Departments or segments within an organization that do not directly generate revenue but incur costs, essential for budgeting and financial analysis.

Budget

An accounting device used to plan and control resources of operational departments and divisions.

Budget Performance Report

A report comparing actual results with budget figures.

Cost Center

A division or department within a business that does not directly contribute to profit but incurs costs, used for budgeting and controlling expenses.