cost-based
Expense-driven pricing method
Cost-based describes methods, systems, or pricing strategies that derive from or are calculated according to actual costs incurred.
In business, cost-based pricing sets prices by adding a markup to production or acquisition costs, rather than basing prices on market demand or competitor pricing.
The term appears frequently in accounting, healthcare reimbursement, and government contracting contexts: Medicare uses a cost-based reimbursement system for certain facilities.
Cost-based approaches prioritize transparency and fairness but may ignore market conditions.
Establishing monetary amounts charged
- markupAdded percentage for profit
- marginEdge of a page
- profitGain exceeding expenditure
- overheadLocated directly above
expense · calculation · formula · methodology · strategy · model · approach · structure
Maintaining financial records
- allocationDistribution of shares
- depreciationAsset value reduction over time
- amortizationGradual debt reduction schedule
- capitalizationUsing big letters properly
valuation · inventory · FIFO · absorption · variance · ledger · bookkeeping
Payment for incurred expenses
- MedicareFederal senior health program
- MedicaidPublic health coverage for poor
- prospectiveExpected in the future
- retrospectiveReviewing what came before
capitation · provider · hospital · insurance · claims · billing · coverage · allowable
Enforceable written agreement
- procurementObtaining goods externally
- bidOffer to purchase
- proposalFormal plan for consideration
- governmentAuthority over a state
defense · allowable · audit · compliance · negotiation · award · federal · vendor
pricing
Establishing monetary amounts charged
overhead · expense · calculation · formula · methodology · strategy · model · approach · structure · analysis
accounting
Maintaining financial records
- allocationDistribution of shares
- depreciationAsset value reduction over time
- amortizationGradual debt reduction schedule
capitalization · valuation · inventory · FIFO · absorption · variance · ledger · bookkeeping
reimbursement
Payment for incurred expenses
- MedicareFederal senior health program
- MedicaidPublic health coverage for poor
- prospectiveExpected in the future
retrospective · capitation · provider · hospital · insurance · claims · billing · coverage · allowable · charges
contract
Enforceable written agreement
- procurementObtaining goods externally
- bidOffer to purchase
- proposalFormal plan for consideration
government · defense · allowable · audit · compliance · negotiation · award · federal · vendor · supplier
cost-basedvalue-based
Grounded in ethics
premium pricing · dynamic pricing · competitive pricing · surge pricing
cost-basedvalue-based
Grounded in ethics
outcome-based · value-driven · performance-based · results-driven · goal-oriented
cost, based, base, costs, costing, costly, costliness, costless, basing