Average cost pricing

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Updated: Aug 20, 2021

The method of setting prices in which, price is set equal to average cost. Since_total revenue is equal to price multiplied by quantity, and total cost is equal to average cost rimltiplied by quantity, average cost pricing ensures that total costs will always be coveted by revenue.

Reference: The Penguin Business Dictionary, 3rd edt.



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.