A _____ objective is a pricing objective that states a specific level of profit,such a as percentage of sales or a return on capital invested,as an objective.
A) profit maximization
B) target-return
C) percentage-of-sales
D) competition-oriented
E) skimming

Question

Quizplus · Accepted Answer

The target-return objective is the one that states a specific level of profit, such as a percentage of sales or a return on capital invested, as an objective. Profit maximization objective seeks to maximize the profit without considering the cost, percentage-of-sales objective aims to achieve a target profit margin, competition-oriented objective focuses on adjusting the price to match the competitors, while skimming objective aims to set a high price for an innovative or unique product. Therefore, B is the best choice.

A _____ Objective Is a Pricing Objective That States a Specific