February 2022
Intermediate to advanced
448 pages
10h 57m
English
Content preview from Cost Accounting For Dummies, 2nd Edition
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Chapter 12
Making Smart Pricing Decisions: Figuring Total Costs
IN THIS CHAPTER
Understanding the impact of pricing on customer decisions
Reviewing issues with special orders
Thinking about short-term and long-term pricing issues
Covering the concept of target costing
Deciding which costs add value
Turn to any chapter in this book, and you’ll find topics about analyzing costs to reduce or eliminate them. Now, a logical next step is to use your total costs to price your product for a reasonable profit. Enter the fascinating world of pricing!
Managers make pricing decisions. They decide what to charge for their products or services. These decisions determine what and how much to produce. Ultimately, production decisions then determine spending.
In this chapter, you see how prices affect the buying habits of your customers (an inconvenient truth). This chapter defines product costing ...
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