BUSINESS COSTING AND PRICING

  • The financial returns for a business organisation come from selling its products or services. The products and services require economic inputs such as raw materials, staff costs and operating expenses to produce the products or provide the services.
  • The price of goods and services is derived from proper accounting and treatment of costs incurred. An incomplete accounting of the costs or the use of an incorrect method of treating the costs, can result in wrong pricing. The consequence is an inappropriate selling price, possibly causing a lower profit or even a loss if it is under-priced. Alternatively, an inappropriately high price would cause a loss of customers and sales.
  • This programme provides the manager with an understanding of business costing and pricing dynamics that helps determine the company’s competitiveness. This is a common business problem in many organisations.