activity-based pricing Definition

activity-based pricing

Definition

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.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Related Terms

product life cycle pricing -

penetration pricing -

Popular 'Accounting' Terms

current ratio
equity
working capital
asset
EBITDA

revenue
net income
negotiable
net profit
net worth

activity-based pricing in the news

Tools

activity-based pricing is ...

... part of the Accounting subject.

Nearby Terms

active market
active money
active participant
active portfolio strategy
activity
activity-based pricing
actual market
actuals
actuarial assumption
actuarial equivalent
actuarial evaluation

Search volume for activity-based pricing

Review the unprecedented moves the Fed & Treasury took to bring the financial markets back from the precipice