A Cost-Based Price Is a Good Starting Point,but Once a Cost-Based

question 49

Essay

A cost-based price is a good starting point,but once a cost-based price has been determined what other factors should be considered before finalizing a selling price?

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Definitions:

Equivalent Annual Cost

Equivalent annual cost is a financial analysis tool used to compare the cost effectiveness of different projects or investments with differing lifespans by calculating their equivalent cost per year.

EAC

Equivalent Annual Cost, a financial analysis tool used to compare the cost effectiveness of different investments or projects over their lifecycles.

Compute

To calculate or process information using a computer or mathematical methods.

Bid Price

The maximum price that a buyer is willing to pay for a security or commodity.