Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
marginal cost
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
A company will choose marginal cost pricing, setting the price of something at or just above the variable cost of production, when they have unused remaining production capacity, or when they are not able to sell the item at a higher price.
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
marginal cost
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
Cost of debt is the original cost of borrowing including original interest rate Marginal cost of debt is new loan which extended from the previous one, the interest of which is called marginal cost of debt.
A company will choose marginal cost pricing, setting the price of something at or just above the variable cost of production, when they have unused remaining production capacity, or when they are not able to sell the item at a higher price.
relation ship between average cost and marginal cost
opportunity cost refers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
nit cost is the average cost of making a product and cost per unit is the marginal cost
The term for the difference between Bid and Ask pricing measured in pips is called the "spread." It represents the transaction cost for trading a financial instrument.
it is the difference between the total cost of producing 8 units and 7 units of output.
The process of setting an item's price at the same level as the extra expense involved in producing another item. By using marginal cost pricing, a business helps keep their sales price down in order to encourage sales during slow periods or to gain market share. Read more: http://www.businessdictionary.com/definition/marginal-cost-pricing.html#ixzz3pvGG727K