Rakesh Sahu
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acharya
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Biggest advantage of this is that company knows exactly the amount of expenditure that has incurred on making a product and therefore they can add profit margin accordingly which helps in achieving the desired revenue for a firm. So for example if a company has incurred expenses of $100 and they want to earn profit margin of 10 % than the company will sell the product at $110
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Anil
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Biggest advantage of this is that company knows exactly the amount of expenditure that has incurred on making a product and therefore they can add profit margin accordingly which helps in achieving the desired revenue for a firm. So for example if a company has incurred expenses of $100 and they want to earn profit margin of 10 % than the company will sell the product at $110
It is the simplest method to decide the price for a product because one has just to add up all the cost and then add profit which you want to earn which will give the price for a product.
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narahari
answered
Biggest advantage of this is that company knows exactly the amount of expenditure that has incurred on making a product and therefore they can add profit margin accordingly which helps in achieving the desired revenue for a firm. So for example if a company has incurred expenses of $100 and they want to earn profit margin of 10 % than the company will sell the product at $110
It is the simplest method to decide the price for a product because one has just to add up all the cost and then add profit which you want to earn which will give the price for a product.
