Return on assets pricing has the same objective as gross margin pricing for the price determination process.

Name: Return on assets pricing has the same objective as gross margin pricing for the price determination process.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Return on assets pricing aims to set prices based on a desired return on investment, while gross margin pricing sets prices based on the difference between the cost of goods sold and the selling price. While both methods are used to determine prices, they have different objectives.

Return on Assets Pricing Has the Same Objective as Gross