Price-Setters Emphasize a Target-Pricing Approach While Price-Takers Emphasize a Cost-Plus

question 102

True/False

Price-setters emphasize a target-pricing approach while price-takers emphasize a cost-plus pricing approach.

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Definitions:

Relevant Range

The range of activity over which changes in cost are of interest to management.

Cost Behavior

Cost behavior refers to how different types of production costs change when there is a change in the level of production activity.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behavior hold true for a given business.

Management Decision-making

This involves the processes and strategies managers use to make choices that direct the organization towards its goals.