Chapter 19

Chapter 19 - 3/30/11 Break-Even Point Drawing the vertical...

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Click to edit Master subtitle style 3/30/11 Pricing Program Services Chapter 19
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3/30/11 Cost-Volume-Profit Analysis! Purpose: To match the revenue with the expenses for an activity AND account for change in volume (participation level) and changes in production costs.
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3/30/11 Costs (Expenditures) Direct Costs Costs used to produce a specific program Indirect Costs Costs that exist within the organization that cannot be directly traced to a specific program
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3/30/11 Variable Costs Costs that change directly and proportionately with changes in volume Changes by the same amount of money with the addition of each new participant or some other unit of volume.
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3/30/11 Fixed Costs Do not change with changes in volume Remain the same for the duration of the program, regardless of the number of participants Both direct and indirect costs
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3/30/11 Changing Fixed Costs Change in the same direction, but not proportionately, with changes in volume or the number of participants
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3/30/11 Tabling Cost Data Pg. 348, 349
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3/30/11 Graphing cost Data Pg. 350, 351, 353
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Unformatted text preview: 3/30/11 Break-Even Point Drawing the vertical line directly above any participation level Line intersects the total cost line 3/30/11 Establishing a Price Depends on the program/service category Merit, Private, Public Also consider the attitude of the target market Compare the price proposed with commercial rates 3/30/11 Public Services No charge Agency does not recover any of its costs of production 3/30/11 Merit Services Programs/services offered at a price that will permit partial recovery of agency costs Partial subsidy Agency partially recovers the cost 3/30/11 Private Services Offered at a price that will enable the agency to recover all of its direct and indirect costs Cost-volume-profit analysis determines and justifies the price to be charged for a program These agencies often add on a margin of profit 3/30/11 Next Week Complete Pricing assignment (10 pts) Read Experience Staging on Blackboard Prepare Class Presentations Three more weeks for Volunteer Logs...
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This note was uploaded on 03/29/2011 for the course RMYL 320 taught by Professor Mcgovern during the Spring '11 term at BYU.

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Chapter 19 - 3/30/11 Break-Even Point Drawing the vertical...

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