Activity-Based Pricing

Activity-Based Pricing (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.

Literature

http://www.investorwords.com/6397/activity_based_pricing.html

Author

Zieliński Tomasz