What costs are relevant to pricing? To answer this question you will need to list those costs and then estimate them. For example, if your product is enterprise software, then the direct costs may include a dedicated R&D group, if the software runs on external servers then that's a direct cost as well, further some part of the sales force and the marketing group may also be direct costs.

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When determining pricing for a product or service its essential to consider both direct and indirect costs that are relevant to the pricing decision D... View the full answer