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
Variances Analysis Variances are the differences between actual results and expected results. Expected results are the standard costs and standard revenues. Price, rate and

Question: (a) "Budgetary control comprises two distinct elements - Planning and Control''. ‘'A budget is a statement of what it is reasonable to believe can be made to ha

Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o

Advantages of kaizen costing 1) Record individual tasks 2) Instantly replay observation 3) Select and use best practice 4) Categorize activities using kaizen terminolo

Change of Technology: Changes in technology commonly leads to improvements in the efficient processing of raw material, reduce in wastages, more speedy production and higher produ

Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company''s

Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The compa

Full cost or mark up pricing or cost plus pricing method: In this method the marketer estimates the total cost of producing or manufacturing the product and then adds it a mar

Prepare Summary Journal Entries to record the( 1) requistion slips

Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o