IDEAS home Printed from https://ideas.repec.org/a/ahd/journl/v2y2021i6p18-25.html
   My bibliography  Save this article

Approaches to Setting Sales Prices

Author

Listed:
  • Corina-Graziella BÂTCĂ-DUMITRU

    (Bucharest University of Economic Studies)

  • Daniela-Nicoleta SAHLIAN

    (Bucharest University of Economic Studies)

  • Cleopatra ȘENDROIU

    (Bucharest University of Economic Studies)

  • Ioan-Codruț ȚURLEA

    (Bucharest University of Economic Studies)

Abstract

Accounting information can be used to set prices, especially in the case in which the company is a market leader and can impose its own price-setting policy on its market. So, prices are generally already set by market leaders and the existence of competition in the case of similar products requires other organization to adapt their prices in order to match theirs. Even in these circumstances, knowing and understanding costs helps managers make decisions regarding the choice of product/service that must be carried out, the quantity that should be sold and whether the market price justifies the business risk involved in any decision to sell on this market. At the same time, understanding the adopted marketing strategy is crucial to using the information provided by management accounting (regarding costs) for price-related decisions.

Suggested Citation

  • Corina-Graziella BÂTCĂ-DUMITRU & Daniela-Nicoleta SAHLIAN & Cleopatra ȘENDROIU & Ioan-Codruț ȚURLEA, 2021. "Approaches to Setting Sales Prices," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 2(6), pages 18-25, June.
    • Handle: RePEc:ahd:journl:v:2:y:2021:i:6:p:18-25
    DOI: 10.37945/cbr.2021.06.03
    as

    Download full text from publisher

    File URL: https://www.ceccarbusinessreview.ro/approaches-to-setting-sales-prices-a125d/download-PDF/
    Download Restriction: no
    File URL: https://www.ceccarbusinessreview.ro/approaches-to-setting-sales-prices-a125a/abstract/
    Download Restriction: no
    File URL: https://libkey.io/10.37945/cbr.2021.06.03?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    cost plus method; target price; target return on investments; optimal sales price; differential analysis;
    All these keywords.

    JEL classification:

    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahd:journl:v:2:y:2021:i:6:p:18-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu CIOBANU (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.