Costing Terms

Price Leadership is a scenario where one firm sets the prices, and other companies in that industry follow the same price. The firm that… Read Article

Collusion in the business world takes place when two or more competitors come together for mutual benefit. There can be various types of collusion,… Read Article

Incentive Contract: Meaning Incentive Contract is a contract between two parties in which one party promises to grant an additional remuneration to another party… Read Article

Cost Plus Contract: Meaning An agreement between two parties whereby one party promises to reimburse the other party for the costs incurred and any… Read Article

Lump-Sum Contract: MeaningA Lump Sum Contract is a legal contract where the contractor promises to complete the whole project at a pre-agreed price. In… Read Article

Acceleration Claims as the name suggests referring to the claim for costs to speed up or accelerate the work. Such claims are common in… Read Article

Preventive costs, as the name suggests are the costs that a company incurs to prevent defects from occurring in a product or service. For… Read Article

External failure cost is one of the three types of cost of quality. It includes the cost a company incurs after a defective product… Read Article

Target Profit Pricing: Meaning Target Profit Pricing, is a strategy that tells the management the total units to be sold to achieve the targeted… Read Article

Internal failure cost is one of the four types of costs of quality. Three other costs are -preventive costs, appraisal costs, and external failure… Read Article

Meaning of a Cost Center? The Cost Center is a department or a distinct unit or division within the framework of a company. These… Read Article