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Unformatted text preview: Outsourcing Contracting with an external party to provide a good or service, rather than performing the work internally Target cost The cost that will provide the desire profit on a product when the seller does not have control over the products price Target selling price The selling price that will provide the desired profit on a product when the seller has the ability to determine the products price Time and material pricing An approach to cost-plus pricing in which the company uses two pricing two pricing rates, one for the labor used on a job and another for the material Transfer price The price used to record the transfer of goods between two divisions of a company Variable cost pricing An approach to pricing that defines the cost base as all variable costs; it excludes both fixed manufacturing and fixed selling and administrative costs...
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- Spring '09