,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,2009 Pearson Prentice Hall.All rights reserved.,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,2009 Pearson Prentice Hall.All rights reserved.,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,(c)2009 Pearson Prentice Hall.All rights reserved.,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,(c)2009 Pearson Prentice Hall.All rights reserved.,Chapter12,Pricing Decisions and Cost Management,Chapter12Pricing Decisions and,Key Terms,Competitive Markets,完全竞争市场,Less-Competitive Markets,不完全竞争市场,Non-Competitive Markets,非竞争性市场（垄断市场）,Cost-Plus,成本加成法,Target Price,目标价格，预订价格,Value Engineering,价值工程,Value-Added Cost,增值成本,Price Discrimination,价格歧视,Peak-Load Pricing,旺季定价法,Predatory Pricing,掠夺性定价,Dumping,倾销,Collusive Pricing,共谋定价,Key TermsCompetitive Markets 完,2,Pricing and Business,How companies price a product or service ultimately depends on the,demand and supply,for it,Three influences on demand&supply:,Customers,influence price through their effect on the demand for a product or service,based on factors such as quality and product features,Competitors,influence price through their pricing schemes,product features,and production volume,Costs,influence prices because they affect supply(Managers who understand the cost of producing their companies products set prices that make the products attractive to customers while maximizing their companies operating incomes.),Pricing and BusinessHow compan,Time Horizons and Pricing,Short-run pricing decisions have a time horizon of less than one year and include decisions such as:,Pricing a one-time-only special order with no long-run implications,Adjusting product mix and output volume in a competitive market,Long-run pricing decisions have a time horizon of one year or longer and include decisions such as:,Pricing a product in a major market where there is some leeway in setting price,Time Horizons and PricingShort,Differences Affecting Pricing:Long Run vs.Short Run,Costs that are often irrelevant for short-run policy decisions,such as fixed costs that cannot be changed,are generally relevant in the long run because costs can be altered in the long run,Profit margins in long-run pricing decisions are often set to earn a reasonable return on investment prices are decreased when demand is weak and increased when demand is strong,Differences Affecting Pricing:,Costing and Pricing for the Short Run,Astel manufactures two brands of personal computers-Deskpoint and Provalue.Datatech corporation has asked Astel to bid on supplying 5,000 provalue computers over the last three months of 2008.after this three-month period,Datatech is unlikely to place any futures sales order with Astel.Datatech will sell Provalue computers under its own brand name in regions and markets where Astel does not sell Provalue.Whether Astel accepts or rejects this order will not affect Astels revenue.,Before Astel can bid on Datatechs offer,Astels managers must estimate how much it will cost to supply the 5,000 computers,.,Direct materials($460per computer*5,000computers),$2,300,000,Direct manufacturing labor($64 per computer*5,000 computer),320,000,Fixed costs of additional capacity to manufacture Provalue,250,000,Total costs,$2,870,000,What price should Astels managers bid for the 5,000 computers order?,Costing and Pricing for the Sh,Strategic and Other Factors in Short-Run Pricing,If the Astel experience strong demand for their products or have limited capacity,companies strategically increase prices in the short run as much as the market will bear.,If the Astels short-run pricing decision it had extra capacity and faced competition,so its focus was on identifying a sufficiently low price at which Astel would still make a profit.(for example:Astel believes that competing bids will be between$596 and$610 per computer.),Strategic and Other Factors in,Lets return to the Astel example.However,this time we consider the long-run pricing decision for Provalue.,Astel has no beginning and ending inventory of Provalue in 2009 and manufactures and sells 150,000 units during the year.,Astel has three manufacturing overhead cost pools-ordering and receiving components,testing and inspection of final products,and rework(correcting and fixing errors and defects)in its accounting system.,Calculating Product Costs for Long-Run Pricing Decisions,Lets return to the Astel exam,ABC Manufacturing Cost Illustration,ABC Manufacturing Cost Illustr,Product Profitability Using ABC Costing:Illustration,Product Profitability Using AB,Alternative Long-Run Pricing Approaches,How do companies use product cost information to make long-run pricing decisions?,Two different approaches for pricing decisions are:,1.Market-based