Introduction
Protecting profits with accurate pricing
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1. Cost-Based Pricing vs. Supply and Demand
The Stice custom-made oak table
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Use of costs in pricing customized products
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Cost-plus contracts: Examples of government contracts
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Cost-plus pricing case: Dugway Printing
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2. Difficulty in Defining "Cost"
Description of Export Clothing Company
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What is the "cost" to make one shirt?
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Is $3.20 per shirt a good selling price?
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3. Pricing Implications of Fixed Costs and Variable Costs
Do stores really sell things at a loss?
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The clever bundling of the Big Mac meal
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Russian restaurant analysis: Breakeven vs. market demand
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Pricing in a fixed-cost setting
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4. Short-term and Long-Term Pricing
Pricing a special order at the print shop
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Evaluating price when there is a production constraint
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Long-term, normal pricing: The case of the projectors
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5. Transfer Pricing
What is transfer pricing and why is it important?
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Case study: Introduction to the transfer pricing controversy
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Case study: What would the owners prefer?
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What do the decision-makers prefer?
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Can transfer pricing solve this conflict?
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6. Pricing and Overhead Costs
Which airline passengers create overhead costs?
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Right-handed airplanes and left-handed airplanes
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The potential consequences of poor overhead assignment
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Conclusion
Pricing, strategy, and KPIs
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Glossary_AccountingFoundations_CostBasedPricing.zip
(100 KB)