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Under cost based pricing method ,costs incurred in producing , & distributing the product is identified as direct costs & indirect costs . All the direct costs are calculated on goods sold (called prime costs) & added with indirect fixed & variable production overheads, administrative overheads, & selling & distribution overheads. when total cost of sales is arrived, a certain percentage of profits (depending on economic condition of customers , competitive factors , subsidies available , & return on investment expected ) is charged on total cost of sales. If subsidies fro government is available per unit of product it will be set-off against total cost to base profit percentage on net cost.
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What is book-built issue in issue of shares?
Bookbuilding method: It is the most common method used. Here the companies decide on the price band. The lowest price is reffered to as floor and highest price is reffered as cap. The investors then have the freedom to bid for the number of shares and the price they are willing to pay for it. The actual price is then discovered based on the bids.
Is Overhead allocated using a percentage-based or quantity-based price?
Overhead can be allocated using either a percentage-based or quantity-based method, depending on the costing system in place. In a percentage-based approach, overhead is applied as a percentage of direct costs, such as direct labor or materials. In contrast, a quantity-based method allocates overhead based on a specific activity level, such as machine hours or units produced. The choice of method typically reflects the nature of production and the business’s accounting practices.
How do you calculate selling price of the business?
There are different methods to calculate selling price of business as follows: 1 - Net assets method 2 - Price earning method 3 - Discounted cash flow method 4 - Intrinsic value method
What is adjusted selling price method in valuation of inventories?
adjusted selling price method , retail price of the inventory is calculated and marjinal profit is deducted from it generally used in retail business also known as Retail inventory method
When an animal is selected based on its offspring what is the selection method by?
when an animal is selected based on its offspring, the selection method is by what
What is a unit price?
Unit price is a valuation method for buyers who purchase bulk
What are the applications of FIFO?
method of price asertainment
What is Weighted Average of Inventory Valuation Method?
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
Why is the percent of sales method known as the income statement method?
bacause its lower the sale price
What is the sponge method based on?
The sponge method is based on traditional bread making techniques but employed highly mechanized procedures
What is the method for determining the price of a new security?
asf
What is the best trading method on fut 15 with 1k?
the best trading method on FUT 15 with 1k is the silver with 200 minimum price and 250 .maximum price
