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Definition
Selling price arrived at by adding overheads and profit margin to the direct cost per unit of a product. In a manufacturer's 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.
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full cost pricing is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
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