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the role of costs is to find a man then make him eat a bag
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∙ 15y ago
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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 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 cost based pricing method?
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.
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 conversion costs?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
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.
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.
How much do Olympus camera lens cost?
The costs for Olympus camera lens has a vast range of pricing. Depending on the lens size, the costs can range from $227 up to and over $1,000. To find an accurate price, lens size is imperative to properly provide pricing.
How do you calculate transfer pricing?
The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost. =variable costs+(selling price-variable costs)
