中国石油大学（北京）工商管理学院管理会计双语课件Chapter6 Cost Information for Pricing and Product Planning.pptVIP

Cost InformationforPricingandProduct Planning Chapter 6 Role Of Product Costs In Pricing And Product Mix Decisions Understanding how to analyze product costs is important for making pricing decisions: Managers make decisions about establishing or accepting a price for their products Even when prices are set by the market and the firm has little or no influence on product prices, management still has to decide the best mix of products to manufacture and sell Role of Product Costs Product cost analysis is also significant when a firm is deciding how best to deploy marketing and promotion resources How much commission (or how many other incentives) to provide the sales force for different products How large a discount to offer off list prices Short-term and Long-termPricing Considerations The costs of many resources are likely to be committed costs in the short-term because firms cannot easily alter the capacities made available for many production and support activities For short-term decisions, it is important to note whether surplus capacity is available for additional production, or whether shortages of available capacity limit additional production alternatives Short-term and Long-termPricing Considerations The length of time a firm must commit its production capacity to fill that order is important because a long-term capacity commitment to a marginally profitable order may: Prevent the firm from deploying its capacity for more profitable products or orders, should demand for them arise in the future Force the firm to add expensive new capacity to handle future sales increases Short-term and Long-termPricing Considerations If production is constrained by inadequate capacity, managers need to consider whether overtime production or the use of subcontractors can help augment capacity in the short term In the long term, managers have considerably more flexibility to adjust the capacities of activity resources to match the demand for them in producing vari