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Meaning of full cost pricing

 

 

 

Full cost pricing

 

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Business glossary

 

Meaning of term full cost pricing :

 

Full cost pricing is a method that businesses use to determine their prices where the fixed costs are allocated between all the products that are sold. For example to decide how much of the cost of the rent to include in the price of each different product they make, a firm may simply allocate the rent according to the percentage of total sales that each product accounts for.

 

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Meaning of term full cost pricing

 

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