Approaches to Setting Sales Prices

Corina-Graziella Bâtcă-Dumitru, Daniela-Nicoleta Sahlian, Cleopatra Șendroiu and Ioan-Codruț Țurlea
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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

CECCAR Business Review, 2021, vol. 2, issue 6, 18-25

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.

Keywords: cost plus method; target price; target return on investments; optimal sales price; differential analysis (search for similar items in EconPapers)
JEL-codes: G13 G17 G31 M11 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:2:y:2021:i:6:p:18-25

DOI: 10.37945/cbr.2021.06.03

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