Target-return pricing adds one critical element to the pricing equation over mark-up pricing.Which is this additional cost element?

Name: Target-return pricing adds one critical element to the pricing equation over mark-up pricing.Which is this additional cost element?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Target-return pricing takes into account the cost of invested capital, which is the cost of the funds used to develop or produce the product. This is the additional cost element that is not considered in mark-up pricing.

Target-Return Pricing Adds One Critical Element to the Pricing Equation