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Adding a standard mark up to the cost of the product refers to?
Wiki User
∙ 15y ago
adding a standard mark up to the cost of the product is adding a "fixed" rate of percentage over the cost to "price" the product. in another word, by doing this all products' selling price has a fixed gross profit over their cost.
Wiki User
∙ 15y ago
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What is cost-plus-pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
Is research and development a product cost?
No. They are only considered a product cost when contracting with a governmental agency.
What is Costco wholesale corporation's product strategy?
Quality product at the cheapest cost.
Is oceano and sons strategy one of product differentiation or cost leadership?
product differentiation
What are the advantage and disadvantages of sales promotion methods?
The advantages of sales promotion methods are that they get more people interested in the product or into the business as well as let consumers try the product at a lower cost in hopes that they will later buy the product at full cost. The disadvantaged are cost and improper use of the methods for the product being sold.
What does Standard cost card shows in cost accounting?
Standard Cost Card shows that how much standard cost of direct material, direct labour and manufacturing overheads and other costs are required to manufacture product or service and it is helpful in control stage and variance analysis.
What is standard markup pricing?
It is a fixed percentage to the cost of all items in a product class.
Cost- plus pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
Is cost-plus pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
What is cost-plus-pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
How would you define a standard cost?
A standard cost is a predetermined cost that a company expects to incur in producing a unit of product or providing a service. It is used as a benchmark for evaluating actual costs and performance. The standard cost is based on factors such as historical data, industry benchmarks, and management estimates.
What is the difference between absorption manufacturing cost and total cost with respect to product pricing?
The absorption cost is the portion that has to come out of the profits. You can usually pass on the cost of materials and labor, by adding them into the price of the product, but there is a limit to how much you can charge for the product. Above that limit, you might have to pay taxes, or transportation costs that cannot be added to the price of the product, and therefore, must be absorbed, lowering the profit.
Difference between high standard of living and high cost of living?
The cost of living is the cost maintaining a certain standard of living. The standard of living refers to he level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living is closely related to the quality of life.
What is standard quantity?
Standard quantity refers to the planned or expected amount of material, labor, or overhead that should be consumed or used in producing a product or providing a service. It serves as a benchmark for evaluating the actual usage and efficiency of resources in production processes. Variance analysis compares actual quantities used with standard quantities to identify deviations and improve cost control.
Role of target costing?
Target costing refers to the design of a product and the processes used to produce it , so the ultimately the product can be manufactured at a cost that will enable the firm to make a profit when product is sold
What do you mean by Money cost and Real cost?
Money cost refers to actually dollar amount, whereas Real cost takes into account the efforts involved in making a product, such as physical or mental effort.
What is the difference between a standard and a budget?
A budget usually refers to a department'sor a company's projected revenues, costs, or expenses. A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead), or per unit of output.For example, a manufacturer will have budgets for its manufacturing or factory overhead departments. Let's assume that the budgeted manufacturing overhead for the upcoming year is expected to be $1,000,000 in order to produce the expected 100,000 identical units of product. The standard cost of manufacturing overhead per unit of product is $10 ($1,000,000 divided by 100,000 units). When the products are not identical, the $1,000,000 of manufacturing overhead might be divided by the expected number of machine hours required to manufacture the units of product. Assuming it will take 50,000 machine hours, the standard cost of the manufacturing overhead will be $20 per machine hour ($1,000,000 divided by 50,000 machine hours).
