Which of the Following Is True of the Rate-Of-Return Approach

Multiple Choice

Which of the following is true of the rate-of-return approach to pricing?

A) Rate-of-return pricing is commonly used by manufacturers.
B) Rate-of-return pricing is a psychological pricing strategy.
C) Rate-of-return pricing does not involve circular reasoning.
D) Rate-of-return pricing places maximum emphasis on estimating sales volume.