24. Which one of the following activities would most likely be considered a long-run pricing decision? A) one-time-only special order-pricing that would result in achieving the break-even point B) product mix adjustments in a competitive market C) setting prices to generate a reasonable rate of return on investment D) changing prices in response to weak demand 25. Which of the following is true of target pricing? A) It is used for short-term pricing decisions. B) It is one form of cost-based pricing. C) A price is an estimate of customers' perceived value of the product. D) A price is calculated by adding a markup component to the cost base. 26. Which of the following is true of value engineering? A) It is the process of building a new product by first determining the selling price of the product. B) It is the process by which a company analyzes its own process to reduce cost. C) It is the process by which a systematic evaluation of all aspects of the value chain, with the objective of reducing costs and achieving a predetermined quality level. D) It is the process by which the competitor's products are disassembled and analyzed. 27. Which of the following is a cost that, if eliminated, would reduce the actual or perceived value or utility (usefulness) customers experience from using the product or service? A) non-value-added cost B) discretionary cost C) value-added cost D) committed cost 28. Which of the following statements is true regarding cost-plus pricing? A) It starts with a target price which is the estimated price for a product. B) A company uses a markup percentage that estimates a product price that covers full product costs and earns the required return on investment. C) It first determines product characteristics and target price on the basis of customer preferences and then computes a target cost. D) The cost-plus price chosen has already been studied for customer reaction to the price.