Setting a price to achieve an annual target return-on-investment (ROI) is referred to as
A)target return-on-investment pricing.
B)target return-on-profit pricing.
C)target return-on-sales pricing.
D)target revenue pricing.
E)customary pricing.

Question

Quizplus · Accepted Answer

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as target return-on-investment pricing. This involves calculating the desired ROI and then setting the price accordingly to achieve that ROI. It is a common pricing strategy used by companies to ensure that they earn a certain percentage of profit on their investments.

Setting a Price to Achieve an Annual Target Return-On-Investment (ROI)