Accurate pricing protects your profits and keeps your products competitive. In this course, instructors Jim and Kay Stice explore cost-based pricing strategies that account for the costs associated with creating products, from materials to man hours, as well as overhead and R&D. Discover how the cost-plus model used in government contracts can provide a baseline for your business, and explore alternatives such as loss leaders and bundling. Then learn how to account for the production constraints for special orders and use forecasting to determine stable long-term prices. Finally, learn how transfer pricing can affect internal performance metrics and international income tax planning, and how activity-based costing allows companies to charge more for products or customers with greater demands.
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