In the earlier article, we discussed pertaining to the factors which affect pricing and the pricing objectives in relation to the business objective.

This article deals with the various pricing methodology, a businessman/entrepreneur can refer to when pricing a product:

FULL COST PLUS PRICING METHODOLOGY:

Full Cost Plus Pricing:

Traditional method […]

Without proper pricing of a product, there will never be a sale and hence no revenue.
 
This article discussed the factors which affect pricing and pricing objectives in relation to meeting the overall business strategy.
 
It is important to understand the factors that can affect pricing. Some of the common factors that affect/determine a firm’s pricing policy […]

Company ABC mixes 2 materials, Material A and Material B in its production process. The following data is provided:
Standard:
Proportion:60% Material A
40% Material B
 

Yield: 90%
[…]

The following are extracts from the records of a cost centre within your business:

Extract 1

Cost Centre A March

Budgeted variable overhead for the year

$2,400

Budgeted output for the year

24,000 units

Actual production for March

1,800 units

Actual variable overhead for March

$200

[…]

Company ABC has suffered severe losses over the years. This situation has arisen partially because of bad industrial relations and poor management control. An extract from the standard cost system report relating to the first 3-month period reveals:

Budged fixed overhead

$800,000

Budgeted ouput

800,000 units

Standard time per unit

15 minutes

Actual hours worked

192,000

Actual output

720,000 units

Actual fixed […]