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What is the difference between cost plus pricing and marginal pricing?
Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.
What is pricing?
the price of something is the cost of it. i hate expensive prices. dont you?
When do firm adopt Marginal Cost pricing?
A company will choose marginal cost pricing, setting the price of something at or just above the variable cost of production, when they have unused remaining production capacity, or when they are not able to sell the item at a higher price.
Is electricity a variable expense?
No but its cost may be variable depending on how much you use.
How segregate the semi variable cost?
In semi variable cost :variable cost = change in cost/change in output then with that rate * output = variable cost semi variable cost - variable cost = fixed cost
What is the concept of average cost pricing and how does it impact businesses in their pricing strategies?
Average cost pricing is a pricing strategy where a business sets the price of its products or services based on the average cost of production. This means that the price is determined by taking into account both fixed and variable costs. Businesses use this strategy to ensure they cover their costs and make a profit. However, it can impact businesses by potentially limiting their ability to adjust prices based on market demand or competition, leading to potential loss of customers or revenue.
Does General Electric use cost based or value based pricing approach?
value-based pricing approach
Marginal versus variable costing?
Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. Variable cost is the sum of all the individual marginal costs. The derivative of the Variable Cost is the Marginal Cost. The integral of the Marginal cost is the Variable Cost.
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
