LAS 7 - Product Costing

• Basic Rules in Pricing a Product

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  The price of the product should cover all the costs and profits
• Basic Rules in Pricing a Product

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  The price of the product should be affordable
• Basic Rules in Pricing a Product

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  The price of the product should be frequently reviewed based on the market demand, competition, and profit objectives
• Basic Rules in Pricing a Product

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  The price of the product must be established to assure sales or marketability
• Methods used to achieve practical and reasonable product cost

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  The cost-plus pricing - It covers all over head expenses plus the desire profits you require
• Methods used to achieve practical and reasonable product cost

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  Demand Pricing - it is regulated by the combination of volume profit. This method is difficult to master because the product are sold through different sources at different places
• Methods used to achieve practical and reasonable product cost

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  Competitive Pricing - It is used when there is an established market price for a particular product or services
• Methods used to achieve practical and reasonable product cost

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  Mark-up Pricing - This method is uesed by manufacturers, wholesalers and retailers. The price of the product is the results of adding a set of amount to the cost of the product