- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello,
i have trouble understanding part C of hammer (pg 112 BPP). i do understand that inclusion of fixed costs will set a higher price which will lower demand. but this question is of four marks and i dont uderstand what else to write in a question like this. Please help me out.
The points worth making are:
Both approaches ignore the effect of the selling price on the demand.
Both approaches ignore the prices charged by competitors
How to decide on the % to add on to the cost in both cases.
How to absorb the fixed costs between the products in the case of absorption cost plus pricing.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Transfr Price Fixed cost’ is closed to new replies.