Asked by Sophia Michelle on Apr 26, 2024
Verified
Another name for markup pricing is target-return pricing.
Markup Pricing
A pricing strategy where a fixed percentage is added to the cost of a product to determine its selling price.
Target-Return Pricing
Involves setting the price of a product based on the expected return on investment (ROI), aiming to meet a predefined profit goal.
- Understand the concept and application of markup pricing.
Verified Answer
AF
Ashlee FendallApr 30, 2024
Final Answer :
False
Explanation :
Markup pricing involves adding a fixed percentage to the cost of a product to determine its selling price, while target-return pricing sets prices to achieve a specific return on investment or sales volume, focusing on meeting financial objectives rather than simply covering costs plus a margin.
Learning Objectives
- Understand the concept and application of markup pricing.