Cost based pricing can be done using 02 methods: Mark up method Margin method Difference between these 02 methods can be illustrated as follows Mark Up Method …
Illustration Assume that by coincidence two firms have exactly the same costs and revanue, but that M ltd uses a marginal costing approach to valuation of …
Absorption costing is a technique where the goods are valued considering full production cost of the product of the product. When pricing or valuing the stocks …
Marginal costing is a technique where the goods are valued considering only the variable cost component of the product. When pricing or valuing the stocks …
What is a “Cost” ? The term “cost” can be defined as all expenses that are incurred in relation to a specific item or an activity. It …