Target Pricing

question 50

Multiple Choice

Target pricing:

• A)is used for short-term pricing decisions
• B)is one form of cost-based pricing
• C)estimates are based on customers' perceived value of the product
• D)relevant costs are all variable costs

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Definitions:

Damage

The monetary compensation required by law to be paid to an individual or entity as restitution for harm or injury they have incurred.

Indemnify

To compensate for harm or loss; in legal contexts, often involves a party agreeing to bear any losses or damages incurred by another party.

Third-party Claims

Third-party claims involve demands for compensation or legal action brought by someone who is not a direct party to a contract, usually in liability or insurance cases.

Insurance

A contract by which an insurance company, the insurer, promises to pay a sum of money or give something of value to another, either the insured or the beneficiary, to compensate for a specified loss.