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[Step 2] Estimate demand, cost and profits
What is cost? What is profit? What is a mark-up? What is Key-stoning? What is incremental costing (and when is it used?)?
What is cost? What is profit? What is a mark-up? What is Key-stoning? What is incremental costing (and when is it used?)?
cost - all variable and fixed costs
profit - amount added above the break even cost
mark-up - amount added above the purchasing cost to cover expenses and profit (cost+profit)
keystoning - marking up prices by 100%
Incremental costing - covering all of VC and some of FC
used when you have excess capacity or no better offer
profit - amount added above the break even cost
mark-up - amount added above the purchasing cost to cover expenses and profit (cost+profit)
keystoning - marking up prices by 100%
Incremental costing - covering all of VC and some of FC
used when you have excess capacity or no better offer
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: Marketing
School / Univ.: UGA
City: Athens
Published: 17.11.2010