TAILIEUCHUNG - Lecture Managerial accounting for Managers (3e): App A - Garrison, Noreen, Brewer

Appendix A: Pricing products and services. In this appendix, we are concerned with the more common situation in which a business is faced with the problem of setting its own prices. Clearly, the pricing decision can be critical. If the price is set too high, customers won’t buy the company’s products. If the price is set too low, the company’s costs won’t be covered. | Pricing Products and Services Appendix A Appendix A: Pricing Products and Services This appendix focuses on pricing products and services. It explains the economist’s approach to pricing, the absorption costing approach to cost-plus pricing, and the meaning of target costing. Learning Objective A-1 Compute the profit-maximizing price of a product or service using the price elasticity of demand and variable cost. Learning objective A-1 is to compute the profit-maximizing price of a product or service using the price elasticity of demand and variable cost. The Economists’ Approach to Pricing Elasticity of Demand The price elasticity of demand measures the degree to which the unit sales of a product or service are affected by a change in unit price. Change in Price versus Change in Unit Sales Economists’ look at pricing by examining the price elasticity of demand for the good or service. The price elasticity of demand measures the degree of change in sales impacted by a change in price.

• Kế toán - Kiểm toán
• Managerial accounting
• Lecture Managerial accounting
• Financial statement
• Profitability analysis
• Pricing products
• Price elasticity
• Managerial accounting for managers
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Kế toán quản trị
• Managerial accounting information
• General cost classifi cations
• Product costs
• Process costing
• Standard costing systems
• Accounting information
• Managerial decision
• Process management
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost