Section
Pricing & Margin — Page 2
Margin, markup and product price — from cost to selling price and back.
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Guide
Batch Yield and Unit Cost: Divide by Good Output
Calculate cost per good unit after production losses and distinguish input quantity, yield, rework, and saleable output.
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Comparison
Scrap Rate vs. Waste Allowance: Different Bases
Convert a loss rate on purchased input into the extra quantity required for usable output, without confusing the two…
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Guide
Direct Labor Cost per Product: Time the Work
Calculate direct labor from task time, batch setup, and a defined hourly cost while keeping idle time and overhead…
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Guide
Allocating Overhead to Products: Choose a Driver
Compare unit-based and machine-hour overhead allocations, then separate assigned cost from costs that a decision…
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Guide
Packaging Cost per Order: Count What You Use
Estimate packaging from order mix, material consumption, packing labor, and waste while separating purchases from cost…
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Guide
Minimum Order Quantity: Unit Price vs. Cash Cost
Evaluate supplier minimums using expected sales, leftover inventory, ordering costs, and cash required rather than…
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Guide
Joint Product Cost Allocation: Separate the Decision
Compare physical-output and sales-value allocations for products from one process, then evaluate further processing…
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Comparison
Make vs. Buy Costs: Compare What Actually Changes
Compare internal production with outsourcing using avoidable costs, supplier delivery charges, and the opportunity…
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Comparison
Sunk vs. Relevant Costs: Decide From Today
Separate past spending from future differences when choosing whether to complete, change, or abandon a business project.
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Guide
Quote Validity and Cost Exposure
Measure the supplier costs still exposed between a customer quote and purchasing, then test how acceptance delays affect…
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Guide
Supplier Rebate Thresholds: Count the Extra Stock
Evaluate a retrospective supplier rebate without treating extra inventory, an uncertain credit, or delayed cash recovery…
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Comparison
All-Units vs. Incremental Purchase Discounts
Compare supplier tier invoices on the same demand horizon, then separate lower acquisition cost from cash tied up in…
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Guide
Purchase Price Variance: Separate Price from Volume
Isolate the price component of procurement spending using actual purchased quantity and a clearly defined standard…
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Guide
Material Usage Variance for Actual Good Output
Compare actual material consumption with the standard allowed for completed good output, separating process usage from…
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Comparison
Labor Rate vs. Efficiency Variance
Separate hourly-cost and time-efficiency effects on labor spending, using the standard hours allowed for actual…
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Comparison
Standard vs. Actual Product Cost
Reconcile a standard product cost card with a completed batch using matched quantities, explicit overhead treatment, and…
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Guide
Order Setup Cost in Product Quotes
Price order-specific setup separately from repeatable unit work, and compare a setup charge with a blended unit quote at…
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Guide
Warranty Allowance per Unit Sold
Build a hypothetical warranty-service allowance from claim incidence and repair-or-replacement cost, keeping it separate…
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Comparison
Consignment vs. Wholesale Economics
Compare producer contribution and cash exposure under wholesale purchase versus a hypothetical consignment arrangement…
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Comparison
Distributor vs. Sales Agent Economics
Compare a distributor purchase price with commission-based direct sales while accounting for the service work and…
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Guide
Wholesale Case-Pack Pricing and Partial Cases
Price wholesale cases and broken-case orders using carton costs, order handling, and the difference between additional…
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Guide
Customer Cost to Serve: Beyond Product Margin
Compare equal-revenue customers using their order, support, and return activity, then distinguish assigned service costs…
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Guide
Supplier Replacement and Transition Cost
Evaluate a supplier switch using recurring landed-cost differences, qualification spending, overlap stock, and ramp…
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Calculator
Weighted Margin Calculator
Combine two product lines using revenue weights, with gross profit dollars and a check for losses instead of averaging…