Answered: Cost calculation

Business

Accounting

Cost calculation

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 8DQ: Although the cost-plus approach to product pricing may be used by management as a general guideline,...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Cost calculation is based, in decision-making, on long-term thinking and can be the basis for the company's pricing.

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