文档介绍：Pricing Decisions and Cost Management
CHAPTER 12
Pricing Decisions
and
Cost Management
Pricing and Business
panies price a product or service ultimately depends on the demand and supply for it
Three influences on demand and supply:
Customers
Competitors
Costs
Influences on Demand and Supply
Customers – influence price through their effect on the demand for a product or service, based on factors such as quality and product features
Competitors – influence price through their pricing schemes, product features, and production volume
Costs – influence prices because they affect supply (the lower the cost, the greater the quantity a firm is willing to supply)
Time Horizons and Pricing
Short-run pricing decisions have a time horizon of less than one year and include decisions such as:
Pricing a one-time-only special order with no long-run implications
Adjusting product mix and output volume in petitive market
Long-run pricing decisions have a time horizon of one year or longer and include decisions such as:
Pricing a product in a major market where there is some leeway in setting price
Differences Affecting Pricing:
Long Run vs3>. Short Run
Costs that are often irrelevant for short-run policy decisions, such as fixed costs that cannot be changed, are generally relevant in the long run because costs can be altered in the long run
Profit margins in long-run pric