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Traditional accounting pricing tools are not fit for the 21st century
Finance & Accounting
Pages 17 (4267 words)
TRADITIONAL ACCOUNTING PRICING TOOLS ARE NOT FIT FOR THE 21ST CENTURY Name of Student Course Name Professor’s Name Name of School INTRODUCTION Since the production of the goods had started the price has been a great matter of concern for both the sellers and buyers.
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 (Gitman 2003, 57). To determine the price of a product, it is greatly necessary for the company to take in account all the expenses made in the production of the good and that add up to the cost of production. ...
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