Which of the following businesses is most likely to use rate-of-return pricing?
A) A large book store
B) A glass manufacturer
C) An independently owned clothing retailer
D) A construction company

Question

Quizplus · Accepted Answer

Rate-of-return or target pricing is commonly used by manufacturers. With this method, price is determined by adding a desired rate of return on investment to total costs.Retailers, such as, book stores and clothing retailers are most likely to use markup pricing. A construction company is most likely to use cost-plus pricing.

Which of the Following Businesses Is Most Likely to Use