cost-plus pricing

cost-plus pricing
The establishment of a product’s selling price by adding a predetermined *markup to the product’s costs.

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  • Cost-plus pricing — is a pricing method used by companies to maximize their profits. The firms accomplish their objective of profit maximization by increasing their production until marginal revenue equals marginal cost, and then charging a price which is determined …   Wikipedia

  • Cost-plus pricing with elasticity considerations — One of the most common pricing methods used by firms is cost plus pricing. In spite of its ubiquity, economists rightly point out that it has serious methodological flaws. It takes no account of demand. There is no way of determining if potential …   Wikipedia

  • cost-plus pricing — An approach to establishing the selling price of a product or service in a commercial organization, in which the total cost of the product or service is estimated and a percentage mark up is added in order to obtain a profitable selling price. A… …   Accounting dictionary

  • cost-plus pricing — An approach to establishing the selling price of a product or service in a commercial organization, in which the total cost of the product or service is estimated and a percentage mark up is added in order to obtain a profitable selling price. A… …   Big dictionary of business and management

  • cost-plus pricing — /kɒst plʌs ˌpraɪsɪŋ/ noun a pricing method that involves basing the price on the production costs and adding a percentage for margin …   Marketing dictionary in english

  • Variable Cost-Plus Pricing — A pricing method in which the selling price is established by adding a markup to total variable costs. The expectation is that the markup will contribute to meeting all or a part of fixed costs, and generate some level of profit. Variable cost… …   Investment dictionary

  • Cost Plus — may refer to: Cost Plus World Market (U.S. Corporation) Cost plus contract Cost plus pricing This disambiguation page lists articles associated with the same title. If an internal link led you here, yo …   Wikipedia

  • Cost-plus contract — A cost plus contract, also termed a Cost Reimbursement Contract, is a contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit.[1] Cost reimbursement contracts contrast with… …   Wikipedia

  • cost-plus transfer prices — Transfer prices set by cost plus pricing, which include a mark up to provide a profit for the supplying division. When variable costs rather than full costs are used in this calculation, the mark up will need to be higher to cover both the fixed… …   Accounting dictionary

  • cost-plus transfer prices — Transfer prices set by cost plus pricing, which include a mark up to provide a profit for the supplying division. When variable costs rather than full costs are used in this calculation, the mark up will need to be higher to cover both the fixed… …   Big dictionary of business and management

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