What is pricing decision, Managerial Accounting

Assignment Help:

Introduction to pricing decision

A pricing decision is one of the most crucial and difficult decision that a firm has to make. It is one of the most difficult decisions. Such a decision affects the long term life of any profit oriented enterprise.

Accounting information is often an important input to pricing decisions. Most firms needs to make decision about setting or accepting selling prices for their products or services. In some firms selling prices are serviced directly from cost information by estimating future products cost and adding a suitable profit margin. In others an recognized market price is accepted. Fundamentally, in pricing decision the management must first decide on its pricing goal and then set the base price for goods or services. After this the firm may design its pricing strategies.

Pricing decision is handled in a variety of ways in different companies. In small companies, price decision is take by the top management. In some larger comparer it may be in the hands of divisional and product line managers but here also top management sets the general pricing policy and objective.

 


Related Discussions:- What is pricing decision

Illustrate what the traffic can bear pricing, What the traffic can bear pri...

What the traffic can bear pricing Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms.

Choosing relationship predicts best variable-cost estimating, Choose the re...

Choose the relationship which best predicts the dependent variable After exploring a diversity of relationships, you should select the one that can best be employed in predicti

Explain zero base budgeting, Introduction of zero base budgeting Steps ...

Introduction of zero base budgeting Steps involved in the introduction of zero base budgeting 1) Corporate objectives should be established and laid down in detail 2) Dec

Steps of choosing an accounting based performance, Steps of choosing an acc...

Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r

What is production cost, What is Production cost It begins with the sup...

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

MOH Cost Help, During the year the company worked a total of 145,900 machin...

During the year the company worked a total of 145,900 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,305,346. What is the amount of underapplied o

Sources of working capital, Sources of Working Capital Finance Working ...

Sources of Working Capital Finance Working capital finance may be classified in the subsequent: Spontaneous Source of Finance Finance that naturally arises in

Explian national income and economic welfare, Question 1: (a) Discuss t...

Question 1: (a) Discuss the main features and problems which Mauritius has to face as a small island developing country. (b) What are the factors which have led to the f

Point estimate of probabilities, POINT ESTIMATE OF PROBABILITIES This a...

POINT ESTIMATE OF PROBABILITIES This approach requires a number of different values for each of the uncertain variables to be selected. These might be values that are reasonabl

Describe the selling costs and development costs, Describe the Selling cost...

Describe the Selling costs and Development costs Selling costs: These are costs of seeking to create and stimulate demand (sometimes termed as marketing) and securing orde

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd