01cost plus versus sales minus cost

1
Traditional View Profit Profit Profit Mfg. Cost Mfg. Cost Mfg. Cost Sales Price Sales Price SALES Changing Costing Methods Principles of Cost Plus: SALES PRICE = COST+ PROFIT Principles of Cost Reduction: PROFIT = SALES PRICE - COST Modern View Profit Profit Profit Mfg. Cost Mfg. Cost Mfg. Cost Sales Price

Transcript of 01cost plus versus sales minus cost

Page 1: 01cost plus versus sales minus cost

Traditional

View

ProfitProfit

Profit

Mfg.

Cost

Mfg.

Cost

Mfg.

Cost

Sales

Price

Sales

Price

SALES

Changing Costing Methods

Principles of Cost Plus: SALES PRICE = COST+ PROFIT

Principles of Cost Reduction: PROFIT = SALES PRICE - COST

Modern

View

Profit

Profit

Profit

Mfg.

CostMfg.

Cost

Mfg.

CostSales

Price