Multiple choice

The method of pricing the product based on the target returns is called as _____

  1. Profit based pricing

  2. Cost based pricing

  3. Return based pricing

  4. Target return pricing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Target return pricing sets prices based on achieving a specific desired return on investment (ROI) or profit margin. The company calculates the price needed to meet its target profit goal. This is different from cost-based pricing (covering costs) or profit-based pricing (general focus on profits). The 'target' aspect specifies a particular ROI objective.

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