The following are some other cost techniques which are useful to management’s decision making:

Opportunity Cost

Represents the opportunities which have been forgone by following one course of action rather than an alternative course.
The opportunity cost in this case is the […]

It is important that Management needs to have sufficient and relevant information to make the correct decisions. Hence, the need to understand relevant costs.

What really is Relevant cost?

A relevant cost relates to future expected costs that will differ with each alternative used.
Because […]

In this Part 5, we look at two other pricing methodologies which are as follows:

Break-Even Pricing:

For this type of pricing, the price at which the products will break-even is used. This break-even price will then be added a profit mark up.

Simple […]

In earlier Part 2& Part 3 we have covered cost plus pricing & Variable/Marginal Cost Plus Pricing respectively, in this article we look at the Rate Of Return Pricing Metholodgy:

Rate Of Return Pricing:

For this type of pricing, the company needs to specify the rate of return on […]

In earlier Part 2, we discussed the Cost Plus Pricing Methodology, here in this article, we look at the variable or marginal cost plus pricing.

Using the variable or marginal cost plus pricing methodology:-

The selling price is determined by adding a mark up or margin on the total variable […]