Pricing Policy

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COST ACCOUNTING Pricing policy ã ã ã ã ã ã Pricing Full Cost Pricing Contribution Approach Transfer Pricing ROI Pricing Objectives of Pricing policies Pricing policy Pricing Assignment of a selling price to product or service provided by the firm. Pricing Decisions Total or full cost pricing ROI pricing Marginal or Contribution approach Transfer pricing ã ã ã ã Total or full cost pricing ã Involves the direct cost as well as indirect cost incurred by overall company which are allocated to p
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  COST ACCOUNTING Pricing policy ã Pricing ã Full Cost Pricing ã Contribution Approach ã Transfer Pricing ã ROI Pricing ã Objectives of Pricing policies  Pricing policy Pricing Assignment of a selling price to product or service provided by the firm. Pricing Decisions ã Total or full cost pricing ã ROI pricing ã Marginal or Contribution approach ã Transfer pricing  Total or full cost pricing ã Involves the direct cost as well as indirect cost incurred by overall company which are allocated to products.  Total or full cost pricing Direct material Direct Labour Factory O/H Fixed Variable Total manufacturing cost Non- Manuf O/H Fixed Variable Total Cost 75 25 50 0 100 50 100 250 50 300 Add: Profit margin(25% on total cost) Selling Price
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