Setting a Price to Achieve an Annual Target Return-On-Investment (ROI)

question 225

Multiple Choice

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

• A)target return-on-investment pricing.
• B)target return-on-profit pricing.
• C)target return-on-sales pricing.
• D)target revenue pricing.
• E)customary pricing.

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Definitions:

Divisionalized Structures

Divisionalized structures are organizational frameworks where the company is divided into distinct units, each with its own set of functions and responsibilities, aimed at addressing specific operational needs.

Functional Structures

An organizational design that groups employees based on their roles or functions, enhancing specialization and efficiency.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the output increases, the per unit cost decreases.

Superordinate Goals

Shared goals that can only be achieved through the cooperation of two or more parties, often used to overcome intergroup conflict.