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Full cost or mark up pricing or cost plus pricing method:
In this method the marketer estimates the total cost of producing or manufacturing the product and then adds it a mark up or the margin that the firm wants. This is indeed the most elementary pricing method and many of services and projects are prices accordingly.
This method assumes that no product is sold at a loss. This method is used when there is no competition in the market or when the cost of production of a product of all the manufactures is almost equal and the margin of profit of all the manufacturers is also equal. This method is used by retail traders also. This method of pricing is based on a simple arithmetic of adding a fixed percentage of profit to the unit cost. Thus retail price of a product can be the cost of manufacture is also known as the sum of margin method'.
International Transfer pricing International transfer pricing refers to the determination of prices to be charged between related persons and in particular within a multination
production budget , how to do ?
Risk seeking: A risk seeker is a decision maker who is concerned in the best likely outcome no matter how small the chance that they might take place i.e. he takes high risks
#Explore the behavioral aspects of budgeting#
COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision
In this section we have discussed the motives for conducting cash balances. In addition, we have discussed cash deficit or surplus situation and how it can be contained by the use
Two-person, zero-sum games Two players X & Y have two alternatives. They show their choices by pressing two types of buttons in front of them but they cannot see the opponents
Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales
major ways that these complexities might impact a business
How might a company use regression results to manage overhead costs?
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