In Purchasing a Motor Vehicle,there Are a Number of Variables

question 43

Short Answer

In purchasing a motor vehicle,there are a number of variables to consider.The colour of the car is an example of a ________ variable.

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Definitions:

Target Costing

A pricing approach where a company determines the potential selling price of a product and then subtracts desired profit to arrive at a target cost, subsequently focusing on reducing manufacturing costs to meet this target.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Selling Price

The amount a customer pays to purchase a product or service, determined by various factors including cost, competition, and demand.

Target Costing

A pricing method that starts with a market-based price point and then deduces the allowable cost to maintain profitability.