Week 8 - Pricing, Target Costing

Question 1

What factors can influence pricing decisions?

Answer 1

• Customers through their demand
• Competitors through their actions
• Costs because they affect supply

Question 2

What is the difference between budgeted and standards costs?

Answer 2

• Standard costs are predetermined costs
• A standard provides cost expectations per unit of activity whilst a budget provides the cost expectation for the total activity