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Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [1] [2] An alternative pricing method is value-based pricing.
Cost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, allocating, aggregating and reporting such costs and comparing them with ...
Grenzplankostenrechnung ( GPK) is a German costing methodology, developed in the late 1940s and 1950s, designed to provide a consistent and accurate application of how managerial costs are calculated and assigned to a product or service. The term Grenzplankostenrechnung, often referred to as GPK, has been translated as either Marginal Planned ...
Resource Consumption Accounting ( RCA) is a management theory describing a dynamic, integrated, and comprehensive management accounting approach that provides managers with decision support information for enterprise optimization. RCA is a relatively new management accounting approach based largely on the German management accounting approach ...
The historical cost of an asset at the time it is acquired or created is the value of the costs incurred in acquiring or creating the asset, comprising the consideration paid to acquire or create the asset plus transaction costs. [1] Historical cost accounting involves reporting assets and liabilities at their historical costs, which are not ...
A basis of accounting is the time various financial transactions are recorded. The cash basis (EU VAT vocabulary cash accounting) and the accrual basis are the two primary methods of tracking income and expenses in accounting. Both can be used in a range of situations, from the accounts of a whole country [1] or a large corporation to those of ...
Misconduct. v. t. e. Activity-based costing ( ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore, this model assigns more indirect costs ( overhead) into direct costs compared to conventional costing.
e. Basis (or cost basis ), as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When a property is sold, the taxpayer pays/ (saves) taxes on a capital gain / (loss) that equals the amount realized on the sale minus the sold property's basis. Cost basis is needed because tax is due based ...
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