Term
|
Definition
| also called action-based costing. This method involves determining hourly costs for each production phase. The amount of time required in each phase of production is multiplied by the hourly rate. Material costs are also included |
|
|
Term
|
Definition
| used when there are standardized product lines. The cost of each item per quantity is listed. For accuracy, price lists should be determined by cost estimating. The lists should be updated regularly |
|
|
Term
| standardized industry price books |
|
Definition
| allows the printer to price visually any kind of job based on established price standards. These standards may not reflect the printer's actual costs |
|
|
Term
| pricing based upon past jobs |
|
Definition
| all costs for a past job are determined. If the new job is the same, the price is based on the past job. |
|
|
Term
|
Definition
| to estimate total costs, a ratio value is multiplied by the costs of paper for the job. May work well when standardized products are used. |
|
|
Term
|
Definition
| price is based on what the competitor charges. May be entirely off actual costs. However, allows the company to "undercut" competitors |
|
|
Term
| customer's willingness to pay |
|
Definition
| accept a price under the market value to bring a customer to the company. Also, some printers may do this as a charity to an organization |
|
|
Term
|
Definition
| a best guess based on past experience |
|
|
