文档介绍：Chapter 12 Pricing Decisions and Cost Management
Pricing Decisions and Cost Management
Chapter 12
Introduction
Pricing decisions are management decisions about what to charge for the products and services panies deliver3>.
To maximize operating e, companies produce and sell units as long as the revenue from an additional unit exceeds the cost of producing it.
Learning Objectives
Discuss the three major influences on pricing decisions
Distinguish between short-run and long-run pricing decisions
Price products using the target-costing approach
Apply the concepts of cost incurrence and locked-in costs
Learning Objectives
Price products using the cost-plus approach
Describe two pricing practices in which noncost factors are important when setting price
Use life-cycle product budgeting and costing when making pricing decisions
Explain the effects of antitrust laws on pricing
Learning Objective 1
Discuss the three major influences on pricing decisions
Major Influences on Pricing Decisions
Customers
Competitors
Costs
The price of a product or service is the e of the interaction between the demand for the product or service and its supply.
Major Influences on Pricing Decisions
Customers influence prices through their effect on demand.
Companies must always examine pricing decisions through the eyes of their customers.
Too high a price may cause customers to reject pany’s product.
Major Influences on Pricing Decisions
Competitors influence prices through their actions.
Alternative or substitute products of petitor may affect demand and force a business to lower its prices.
Fluctuations in the exchange rates of different countries’ currencies also affect pricing decisions.
Major Influences on Pricing Decisions
Costs influence prices because they affect supply.
The lower the cost relative to the price, the greater the quantity of product pany is willing to supply.
Learning Objective 2
Distinguish between short-run and long-run pricing deci