costing
This query is : Resolved
16 February 2010
when did price fixed at or below marginal cost? if company so do it will incurr losses isn't it ? in case of introduction of new product it is acceptable? please reply me
CMA Ramesh Krishnan
(Expert)
16 February 2010
My view, Introduction of new product for capture the market,dumping the product in market,damage the market share of competitor price may fixed below the marginal cost, if the company fix the price below the marginal cost it will incurr gross loss(loss of contribution)
CMA Arif Farooqui
(Expert)
21 February 2010
agree . in situation mention by Ramesh, a company may sell its product below marginal cost.
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