Corporate administration costs do not include among major categories of corporate costs. These costs include the accounting, human resources, legal, marketing, and sales functions. When corporate costs are incurred, they are considered to be period costs, and so are charged to expense as incurred.
In customer cost hierarchy, costs of those activities that cannot be traced to distribution channels or individual customers are called
In customer cost hierarchy, costs of individual customer support activities are classified as customer-sustaining costs. A customer-sustaining cost is the cost of resources consumed to service a customer regardless of the number of units sold to the customer.
Pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as
Pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as time and material method. The Pricing Methods are the ways in which the price of goods and services can be calculated by considering all the factors such as the product/service, competition, target audience, product's life cycle, firm's vision of expansion, etc. influencing the pricing strategy as a whole.