activity-based pricing


A variant of cost-plus pricing that takes into account the specific resources required to make a product. Instead of charging an arbitrary fee to cover fixed expenses, a business would calculate the cost of labor, buildings, administration, and other inputs. This type of pricing is more difficult to calculate than simple cost-plus pricing.

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You may want to try and implement activity-based pricing so that you are always adjusting to the changes of the market.

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The activity-based pricing was the best method for attributing the exact usage of the resources being expended for the project.

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We did some activity-based pricing and thought everything was going well for us and we knew that we needed to make some changes.

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