Marketing decisions, Managerial Accounting

  • Marketing refers to the promotion of products, especially advertising and branding. But marketing includes product management, pricing, promotion and distribution of a product or a service.

  • One of the most important operating decisions that a management must make is the pricing decision. Pricing refers to the assignment of a selling price to a product or service provided by the company. If the primary objective of pricing is to maximize profits, cost analysis can help select the price that will yield the greatest profit.

  • Pricing decisions may be influenced by internal factors, such as costs and profit objectives, and by external factors, such as competitor's pricing actions or regulatory pricing on profit guidelines.

  • Under normal circumstances, the prices are based upon total cost of sales so as to cover both fixed as well as variable cost and in addition to provide for certain desired margin of profit. Sometimes, it may become necessary to reduce the selling prices to the level of marginal cost or even below the marginal cost.

  • Target cost is the estimated cost of a product that enables a company to remain and compete in the market in the long-run. Target costing is a method of costing which is intended to reduce cost, where such reduction is aimed at the entire life cycle of product.

 

 

Posted Date: 8/30/2012 3:37:15 AM | Location : United States







Related Discussions:- Marketing decisions, Assignment Help, Ask Question on Marketing decisions, Get Answer, Expert's Help, Marketing decisions Discussions

Write discussion on Marketing decisions
Your posts are moderated
Related Questions

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is cons

EOQ Model with quantity discounts Circumstances frequently occur where firms are able to obtain quantity discounts for large purchase orders. Buying in bulkiness has some merit

Difference between budgetary control and standard costing Budgetary control The budgets are prepared for the concern as a whole. The budgets are fixed on the basis of p

Use of Budgetary controls Budgetary controls are used for the following reasons: 1) To state the objectives of the organization as a whole. 2) To reveal the extent by whi

PERMANENT ABANDONMENT OF PREMISES A company may find it more profitable to concentrate its output in some factories by closing down others.  The decision, in this instance, is

#queThe following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they

How much was Topaz’s operating income (income before taxes) last year?

reasons for favourable or adverse variances i.e. prise usage, mix, yeild

I am to write thesis on Budget and Budgetary Contro. Can you please help me with contents and notes?