TAILIEUCHUNG - Lecture Managerial accounting: Creating value in a dynamic business environment (10/e): Chapter 15 - Ronald W. Hilton, David E. Platt

Chapter 15, target costing and cost analysis for pricing decisions. After completing this chapter, you should be able to: List and describe the four major influences on pricing decisions, explain and use the economic, profit-maximizing pricing model, set prices using cost-plus pricing formulas, discuss the issues involved in the strategic pricing of new products,. | Target Costing and Cost Analysis for Pricing Decisions Chapter 15 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 15: Target Costing and Cost Analysis for Pricing Decisions Major Influences on Pricing Decisions Pricing Decisions Political, legal, and image issues Competitors Costs Customer demand 15- Setting the price for an organization’s product or service is one of the most important decisions a manager faces. It is also one of the most difficult, due to the number and variety of factors that must be considered. Customer demand is a very important consideration in pricing decisions. Decisions regarding customers mean that management must find the proper balance between perfect quality and perfect price. The higher the quality, the higher the price. Lower quality means lower price. It is critical for management to find the proper balance that their customers want. .

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