管理企业会计15.ppt

McGraw-Hill/Irwin 15-* Target Costing andCost Analysis forPricing Decisions 15 Chapter Fifteen Major Influences onPricing Decisions PricingDecisions Political, legal, and image issues Competitors Costs Customerdemand Quantity made and soldper month Determining the Profit-Maximizing Price and Quantity Dollarsper unit Demand Marginalrevenue q* p* Marginalcost Profit is maximized where marginal cost equalsmarginal revenue, resultingin price p* and quantity q*. Determining the Profit-Maximizing Price and Quantity Total revenue Dollars Total cost Total profit at the profit-maximizingquantity and price,q* and p*. Quantity made and soldper month q* Price Elasticity The impact ofprice changes onsales volume Demand is elastic ifa price increase has alarge negative impacton sales volume. Demand is inelastic ifa price increase haslittle or no impact on sales volume. Cost-Plus Pricing Price = cost + (markup percentage × cost) Variablemanufacturingcost? Full-absorptionmanufacturingcost? Total cost,including sellingand administrative? Total variable cost,including sellingand administrative? Target Costing Market researchdetermines the priceat which a new product will sell. Management computes a manufacturing cost that will provide an acceptable profit margin. Engineers and cost analysts design a productthat can be made for the allowable cost. Target Costing Keyprinciplesof targetcosting Price led costing Focuson the customer Focus onproductdesign Focus onprocessdesign Cross-functionalteams Life-cyclecosts Value-chainorientation Value Engineeringand Target Costing Target cost information Product design Product costs Production processes Value Engineering Cost reduction Design improvement Process improvement Competitive Bidding High bidprice Low probabilityof winning bid High profit ifwinning bid Low bidprice High probabilityof winning bid Low profit ifwinning bid Competitive Bidding Guidelines for Bidding B