Full cost pricing

Full cost pricing,

Definition of Full cost pricing:

  1. Selling price arrived at by adding overheads and profit margin to the direct cost per unit of a product. In a manufacturers overheads computation, less than full capacity utilization of the plant is factored in to allow for fluctuations in the output. The profit margin is computed as a fixed percentage of the average total cost of the product.

Meaning of Full cost pricing & Full cost pricing Definition