KeyLine, Inc

question 66

Multiple Choice

KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it earns a 20 percent return on investment. Which pricing objective is the company following?

• A) Meet competition
• B) Unit sales growth
• C) Nonprice competition
• D) Target return
• E) Share of market

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Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time.

Acquisition Consideration

The total value paid by a company to acquire another company, which may include cash, stock, or other assets.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.

Functional Currency

Functional currency is the currency of the primary economic environment in which an entity operates, and in which its financial statements are prepared.