Cost-based pricing is a method to set the product price according to the unit cost of the product plus a certain percentage of profit. Most enterprises determine the new profit according to the cost profit rate. That is: price = unit cost × cost profit rate = unit cost (l+ cost profit rate) Full cost-based pricing is a common pricing method for enterprises.
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The basic characteristics of pricing cost include the essential characteristics and quantitative characteristics of pricing, which can also be called the general principle of pricing cost accounting. The basic characteristics of pricing cost include legitimacy, relevance, rationality and stability. Among them, legitimacy and relevance mainly reflect the essential characteristics of pricing, while rationality and stability mainly reflect the characteristics of pricing cost.
Legitimacy Legitimacy means that the specified price cost should be accounted for in accordance with the relevant laws and regulations and the unified accounting system of the state; Laws and regulations, unified national accounting system and relevant national policies clearly cannot be included in the accounting cost, let alone the pricing cost.
Legitimacy is a necessary condition for pricing cost, but it is not a sufficient and necessary condition. Not all expenses that meet the requirements of laws, regulations and relevant policies can be included in the pricing cost.
Relevance. Relevance refers to the expenses included in the pricing cost, which should be directly or indirectly related to the production and operation process of government-priced goods or services. Relevance is the basis of pricing cost.
Baidu Encyclopedia-Pricing Cost