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Accounting for Managers: Interpreting Accounting Information for Decision-Making, Canadian Edition by Eckhard Schumann, Sandy M. Kizan, Paul M. Collier

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CHAPTER 8

Marketing Decisions

LEARNING OBJECTIVES

After reading this chapter, you should be able to answer the following questions:

images Why is it important to understand cost behaviour in pricing and marketing decisions?

images How can cost-volume-profit (CVP) analysis be used to help answer “what if” questions related to sales volume and pricing?

images How is cost information used in setting prices?

images How can a company determine an optimal price for its products by considering demand volumes?

images What costs must a company include when setting a price for a one-time special order?

images How does a company determine a minimum transfer price between intercompany divisions?

images What cost information needs to be considered when a company is in the process of deciding to keep or drop a product line?

This chapter considers ...

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