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elysa elios
on Dec 17, 2024

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The desired selling price for a product will be the same under both the variable and total cost methods.

Variable Cost Method

A pricing strategy that only accounts for direct materials, direct labor, and variable manufacturing overhead costs, excluding any fixed costs from its calculations.

Total Cost Method

An accounting approach that includes all manufacturing or production costs (direct materials, direct labor, and manufacturing overhead) in the cost of finished goods.

Selling Price

The amount a buyer pays to acquire a product or service from a seller.

  • Understand the mechanics and implementation of the cost-plus pricing model.
  • Acquire knowledge of the total cost approach in pricing and its various components.
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Timber PrinceDec 19, 2024
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