LAS 7 - Product Costing
Cards (8)
- Basic Rules in Pricing a Product-The price of the product should cover all the costs and profits
- Basic Rules in Pricing a Product-The price of the product should be affordable
- Basic Rules in Pricing a Product-The price of the product should be frequently reviewed based on the market demand, competition, and profit objectives
- Basic Rules in Pricing a Product-The price of the product must be established to assure sales or marketability
- Methods used to achieve practical and reasonable product cost-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-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-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-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