Target return pricing objectives:
A) usually are very high for firms facing heavy competition.
B) aren't used by industry leaders because they can maximize profits.
C) would never make sense for a nonprofit organization.
D) may simplify the management of large producers with many divisions or departments.
E) All of the above.

Question

Quizplus · Accepted Answer

Target return pricing objectives may simplify the management of large producers with many divisions or departments because it allows each division to set its own profit goals and adjust pricing accordingly. Option A is incorrect as setting very high return targets can make it difficult to compete with other firms offering lower prices. Option B is incorrect as industry leaders may still use target return pricing objectives to maintain their market position. Option C is incorrect as nonprofit organizations may still want to generate enough revenue to cover their operating costs and achieve their mission.

Target Return Pricing Objectives