... inspection•Market Price » Price equals interaction of many buyers and sellers»Supply and demand establish prices 14- 19 Chapter 14 Price and Cost Analysis 14- 1Internet / e-Procurement ... Postage•Total Production Costs»Sum of variable, fixed and semi variable costs•Direct Costs•Indirect Costs (Overhead) 14- 13 Cost, Volume, Profit RelationshipsFigure 14- 1 14- 14Regulation by Competition•The ... nonstandard items and services 14- 23 Cost Analysis Defined• Cost analysis is a review and an evaluation of actual or anticipated costs»It involves the application of experience, knowledge, and...