List the four common cost bases used in cost-plus pricing. How can they all result in the same price?
List the four common cost bases used in cost-plus pricing. How can they all result in the same price?
The profits can be arrived from the income statement of the company. All the revenues, and expenses during the operations of the company will be recorded in the income statement. The expenses will be subtracted from the revenue to arrive at the profits of the company, and these profits will be taken to the balance sheet.
The cost of the product can be arrived through cost accounting, and from the cost sheet prepared by the cost accountant, and it will be used to determine the sale price of the product. The company will fix a profit margin above the cost of the product, and it will sell it to the customers. So that the company can earn the required profits. All types of expenses will be considered while calculating the profits of the company.
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