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Do you agree that relevant costs for pricing decisions are full cost of the products?
Not essentially. The relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions.
What is the pricing method that establishes selling prices based on a stipulated rate above total production costs is?
Gross Margin Pricing
When government structure no longer decides each companys market role and pricing?
Deregulation~
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.
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 conversion costs?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
Do you agree that relevant costs for pricing decisions are full cost of the products?
Not essentially. The relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions.
What has the author James Salvate written?
James Salvate has written: 'Profit costing and pricing for services' -- subject(s): Costs, Industrial, Industrial Costs, Management, Pricing, Small business
What is segmented pricing?
Segmented pricing is when two prices are set for one product without a difference in production or distribution costs.
What is the pricing method that establishes selling prices based on a stipulated rate above total production costs is?
Gross Margin Pricing
What is the differences between cost-based pricing or market-based pricing?
Cost based pricing uses the costs that were invested in producing the goods. In market based pricing, supply and demand are the key factors that determine price.
Disadvantages of Cost-Based pricing?
The cost based pricing may overlook costs that are not monetary. Cost based pricing may overlook inefficiency Cost based pricing may not take advantage of consumer surplus.
What is company oriented pricing?
Pricing driven by a company's internal factors. The company will take a stock of all the internal costs and determine a pricing that will ensure a return. e.g. Cost plus method.
What are the 6 stages involved in establishing prices?
Determine pricing objectives Evaluate costs Analyze competitors' prices Set pricing strategy Determine pricing tactics Review and make adjustments
What is the all-inclusive pricing for this vacation package?
The all-inclusive pricing for this vacation package includes all costs such as accommodation, meals, activities, and taxes.
The concept of transfer pricing involves the role of?
multinational corporations
What are the internal and external factors for pricing?
There are internal and external factors for pricing. The internal factors include the manufacturing or purchasing costs while external factors depend on the demand of a product.
