You may wish to choose a business you already have knowledge of from trips or your part-time employer.
For a product of your choice:
1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs
2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then calculate the marginal and absorption costs per unit.
3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited to your chosen business’ product and why. You may wish to choose a business you already have knowledge of from trips or your part-time employer.
For a product of your choice:
Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs
2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then calculate the marginal and absorption costs per unit.
3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited to your chosen business’ product and why.You may wish to choose a business you already have knowledge of from trips or your part-time employer.
For a product of your choice:
1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs
2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then calculate the marginal and absorption costs per unit.
3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited to your chosen business’ product and why.You may wish to choose a business you already have knowledge of from trips or your part-time employer.
For a product of your choice:
1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs
2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then calculate the marginal and absorption costs per unit.
3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited to your chosen business’ product and why. You may wish to choose a business you already have knowledge of from trips or your part-time employer.
For a product of your choice:
1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs
2. Suggest the weekly production level and a breakdown of costs for one
product from your chosen business. Then calculate the marginal and absorption costs per unit.
3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited to your chosen business’ product and why.You may wish to choose a business you already have knowledge of from trips or your part-time employer.
For a product of your choice:
1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs
2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then calculate the marginal and absorption costs per unit.
3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited to your chosen business’ product and why.
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