管理会计双语人教版chapter 10--精选篇3568.pptVIP

When a company is a price-taker, it emphasizes a target-pricing approach to pricing. Target pricing starts with the market price of the product (the price customers are willing to pay) and then subtracts the company’s desired profit to determine the product’s target full cost—the full cost to develop, produce, and deliver the product or service. In this relationship, the market price is “taken.” A product’s full cost contains all elements from the value chain—both inventoriable costs and period costs. It also includes both fixed and variable costs. If the product’s current cost is higher than