Business Tools for Career Readiness

Finance for
Non-Financial Professionals
Module 2

with David Standen, D.B.A.

Pricing
Revenue = Price Volume

Absorption Costing
Some overhead costs are absorbed by the
units produced.

Full Costing
Absorption costing applies factory overhead
costs, full costing also includes
administrative overhead costs.
With full costing, each product contributes to
EBITDA.

Cost - Price - Strategy

Costing methods drive pricing strategies
Pricing strategies must be congruent with the
business environment
Understanding costing (and thus pricing) options
allow us to better respond to the demands of our
sector

Up next
Financial Ratios