COMMERCE 2AB3 Lecture Notes - Lecture 4: Gross Profit, Cost Driver, Target Costing
10 Aug 2016
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Pricing- chapter 12: special order pricing chapter 11, cost-plus pricing. You don"t want to go to another country if you don"t get a minimum of 10%. Cost will have an upper limit: target pricing (e. g magna international they make sparks for cars. Division 1 making the cost of the product is 10 and the selling price 15 to outsider. Product costing systems (how to calculate the unit of a product) Chapter 4- job order costing or traditional costing system or normal costing or single rate. Use for unique product where one product uses very different resources from another product or job. Hospital because a patient can walk in for a head ach or for a surgery there are many different service. Car manufacturing are they putting a tire on the car or the window. Jewelry they make ring, necklace, bracelet, watch.
