Got a tricky question? Receive an answer from students like you! Try us!

Traditional accounting pricing tools are not fit for the 21st century - Essay Example

Only on StudentShare
College
Author : kpurdy
Essay
Finance & Accounting
Pages 18 (4518 words)

Summary

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…

Extract of sample
Traditional accounting pricing tools are not fit for the 21st century

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. ...
Download paper

Related Essays

Finance and Accounting Essay: Option Pricing
The loss that amounts is in the loss of cash or amount paid for the option. Determinants of an option are stated as stock price, volatility, strike price, risk free (short term) interest rate and time to the expiration. The contract in this case, is called the option contract (Don, 2004, 142). Options are used by holders for leverage or for protection. The leverage function helps the holder to control the shares bought for a portion what they would have cost. On the other hand, protection measures are adopted when the holder wants to guard against price fluctuations. He enters in to a contract…
12 pages (3012 words)
Costing for the 21st Century
So that they may experience long-term profitability, careful planning and decision-making are necessary. The primary reason why people engage in business is to earn profit. Companies who have great knowledge in the mathematics of business are more likely to survive in the changing business environment (Foster, 2007). The management of businesses applies costing methods to help them make the right decisions. The use of cost, price, and volume analysis (CVP analysis) for the 21st century organizations is becoming an issue nowadays. Because the focus of CVP is to deeply understand the correlation…
3 pages (753 words)
Responsibility Accounting and Transfer Pricing
Required: a. Calculate depreciation expense and book value of the metal press under both historical cost and price-level-adjusted historical cost. For the historical cost, the metal fabrication press would depreciate $43,500 per year ($522,000/12). In terms of the book value of the metal fabrication press under historical cost, the net book value would be $217,500 ($522,000-($43,500*7). In comparison, the price-level-adjusted historical cost would give a new cost of $621,180 (Increase of 19% on the original cost. If this is so, the new book value would amount to $316,680 ($621,180-$304,500).…
4 pages (1004 words)
Has the budget outlived its usefulness in the 21st century?
Budgeting also allows for proper accounting, it make it easier for accounting practices to be applied and used in making financial reports of the different environment (Bogsnes 2003, p.97). Therefore, whether budgeting is or not a prerequisite, it is a subject of serious debate that should be considered in more than one-way. Following this proposal to do away with budgets, researches have been done to evaluate and report on the efficacy of budgets in organization. One of the researchers done by Dugdale and Stephen reported that budgeting is still conseidered a very important tool in business…
8 pages (2008 words)
Accounting tools
Most of the companies are getting dominated by the international competition. The primary cause of this competition is demand based supply and widely accepted e-commerce. Since, the utilization of management accounting tools is important for most of the companies with the aim of developing logical and reliable business strategies. The primary features of management accounting are to help the organisation in the area of decision making, control and support strategic planning (Kaplan and Norton, 1996, p.58). In this essay, the researcher will stress on the different aspects of management…
4 pages (1004 words)
Accounting & Finance, Information Tools
The acid test ratio declined from 0.64 in 2011 to 0.43 in 2012. This indicates company weakness and implies that the company had fewer current assets to meet creditor’s obligation. Additionally, the inventory turnover decrease from 6.1 in 2011 to 5.2 in 2012, this indicates company weakness because more of its cash had been tied up in stocks. In addition, account receivable turnover decreased from 32.2 to 30.5 in 2012, this indicates company weakness. On the contrary, day’s on sales receivable turnover increased from 11.1 to 12.0 in 2012. This indicates company strength in colleting its…
3 pages (753 words)
Tools for Accounting
Like all professionals, accountants rely on various tools to help them perform various accounting tasks. Looking back at the history of the accounting profession, it can be said that the types of tools used for accounting have increased in number as well as they have become sophisticated with developing business markets and their implementation is becoming complicated. This brief paper will highlight and discuss the use of a current technology XBRL for accounting purposes. Individuals and business organizations may use tags to design business and financial software. The use of XBRL is highly…
4 pages (1004 words)