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Traditional accounting pricing tools are not fit for the 21st century - Essay Example
Finance & Accounting
Pages 18 (4518 words)
This research is being carried out to evaluate and present traditional accounting pricing tools that are not fit for the 21st century. The pricing strategy utilized in the past can be studied through four key strategies which are Hi-Lo Pricing, Every Day Low Price, Profit Up Front and Access Pricing…
This paper illustrates that since the production of the goods had started the price has been a great matter of concern for both the sellers and buyers. The producers and sellers have been coming up with different pricing techniques and strategies that they found perfect in the scenario they are working. With the change in time and modernization of the society, it has become evident for the sellers to adopt new and better pricing strategies to compete well in market and keep up with the expected prices of consumers as the consumers are always having a wider choice of companies to buy the product that they want in most of the cases. Basically the accounting functions may help in price determination in this modern market place because the accounting functions allow record keeping of all business transactions making it possible to easily estimate the costs and then calculating the prices to be charged accordingly. Several pricing tools have been introduced for sellers and producers in order to the prices for their products effectively. Accurate pricing is very important for each company in order to attain the long term profitability for the company. It is necessary that the objective of the pricing strategies adopted by a company should be a sign of the complete marketing plan of the company. A pricing strategy adopted by the company should be chosen in a way that it helps in maximizing the profits for the company by stabilizing the sales and attracting the potential customers in market. ...