Target Pricing Refers to

question 305

Multiple Choice

Target pricing refers to

• A)a method of selecting specific prices wholesalers and retailers are willing to pay oriented 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)method of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and (3) deliberately adjusting the composition and features of the product to achieve the target price.
• E)method of estimating the price that ultimate consumers would be willing to pay for a product, determining how much wholesalers wish to charge its customers, and the deliberately adjusting the composition and features of the product to achieve the target price to consumers.

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout a factory or plant for allocating overhead costs to products.

Activity-based Costing

An accounting method that identifies the activities that incur costs and then assigns indirect costs to products based on their use of those activities.

Designing

The process of planning and creating something with a specific function or intention in mind.

Product-level Activity

Product-level activity refers to tasks or operations directly associated with a specific product, impacting its cost and production process.