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Profit Should Always Be at the Heart of a Pricing

question 55

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Profit should always be at the heart of a pricing strategy.


Definitions:

Flexible Budget

A budget designed to vary in response to different levels of volume or activity.

Revenue

The income generated from normal business operations, such as the sale of goods or services.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.

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