Week 5.2

• What are some of the factors affecting price determination

  1 Product cost - P

  2. Utility and Demand - U

  3. Extent of competition in the market - E

  4. Governemtn and Legal regulation - G

  5. Pricing objectives - P

  6. Marketing methods used- M
• What are the types of product cost?

  1 F - Fixed cost

  2. V - Variable cost

  3. S - Semi variable cost
• It is a type of cost which does not change with change in production volume. It remains constant whether 1000 units or 10 units or zero units are produced. Eg. Salaries, Rents

  Fixed cost
• It is a type of produc cost that pertains to the cost which changes with change in production level. It is directly proportional to the level of production. Therefore, variable cost will be incurred only if there is production. EG. Raw materials, petrol exp, labour cost

  Variable cost
• It is a type of product cost that pertains to the cost which varies with the level of production activity but is not directly proportional to the production activity

  Semi-Variable cost