Costing Flashcards by Joshua Martin

Q

Types of Costing/Pricing for Transfer Pricing

A

Market Based

Marginal Cost

Full absorption cost

Cost Plus

Negotiated

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Q

Cost-Based Pricing Models

A

Cost Plus

Target Costing (Price fixed, cost reduction)

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Q

Problems Target Costing

A

Only works for certain industries (Automotive) not electronics
May reveal unpalatable view of internal operations
Still need to estimate costs
Time consuming process

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