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What the traffic can bear pricing
Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms. This method brings high profit in the short term. But what the traffic can bear is not a safe concept. Chances of errors in judgment are very high. Also, it involves trial and error. It can be used where monopoly oligopoly condition exists and demand is relatively inelastic to prices. Buyer opposition or consumerism is bound to set in course of time when a firm sets its prices on the basis of what the traffic can bear.
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select any manufacturing company of your choice that produces any product. describe and compare the marginal and absorption costing system used in the selected company
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companyXYZusesthe job oder costing system.
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
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