Choose a Firm and Discuss the Nature of Its Structure

question 93

Essay

Choose a firm and discuss the nature of its structure using the four building blocks of structure as your focus.

Understand the absorption costing approach to cost-plus pricing.

Calculate the required markup on absorption cost to achieve a desired rate of return on investment (ROI).

Understand the effect of sales volume changes on markup under absorption costing.

Apply cost-plus pricing methodology in manufacturing settings.