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Meaning of average cost pricing

 

 

 

Average cost pricing

 

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Business glossary

 

Meaning of term average cost pricing :

 

Average cost pricing is a method of pricing where the firm finds the average cost of the product (the unit cost) and then sets their price by adding a mark-up onto the average cost. For example, the average cost may be £10 per unit and the firm may add a mark-up of 10% giving a price of £11.

 

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