Target return pricing objectives
A)are usually 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 these answers are correct.

Question

Quizplus · Accepted Answer

A target return objective has administrative advantages.Performance can be compared against the target.Some companies eliminate divisions,or drop products,that aren't yielding the target rate of return.

Target Return Pricing Objectives