Question

Difference between target return pricing and seal-bid-pricing

Answer 1

Explanation:

Definition: The Target-Return Pricing is a method wherein the firm determines the price on the basis of a target rate of return on the investment i.e. what the firm expects from the investments made in the venture.

Here, the firm calculates the amount invested in the business activities and then determine the return they expect from these assuming a particular quantity of the product is sold.

target return pricing

Answer 2

Definition: The Target-Return Pricing is a method wherein the firm determines the price on the basis of a target rate of return on the investment i.e. what the firm expects from the investments made in the venture