ACC349 Cost Accounting WEEK 5 DQs__ 2 SETS OF ANSWER + WEEKLY SUMMARY

·         This week, in reading chapter 8, we will be learning of various pricing decisions which include many different factors.  I will be posting new discussions in this thread as the week progresses to ensure we have covered all types of pricing.  If a question has already been answered, please move on and answer the newer questions.  So, let's get started!

One of the pricing approaches is Cost-Plus pricing.  Let's discuss the benefits as well as limitations using this pricing method.  When is this method typically used and give an example.

Budgets are a great planning tool that can be utilized by management.  Let's discuss the master budget and some of the various components that are included.  According to our text, "the master budget is a set of interrelated budgets that constitutes a plan of action of action for a specified time period."

Class, pick a budget that would be included in the master budget (page 356 in our text is an excellent reference).  Change the subject line to the individual budget that you have selected.  Please discuss the benefits of that section of the budget as well as how management would realistically arrive at these numbers.  Is the budget you selected an operating budget or a financial budget?  Why