By Michael Armstrong
Designed for simple reference, this better half for managers and scholars incorporates a variety of attempted and proven instruments along new administration innovations which have been built within the contemporary previous. summary: Designed for simple reference, this significant other for managers and scholars incorporates a diversity of attempted and confirmed instruments along new administration strategies which were constructed within the contemporary earlier
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Additional resources for A handbook of management techniques : a comprehensive guide to achieving managerial excellence and improved decision making
The general objective might be profit maximization, but the company’s product mix should be examined in terms of individual items, and price tactics applied individually, rather than Pricing ᔡ 23 singular pricing decisions applying to the complete range. Prices should adopt a customer focus, and this will determine whether the product is bought or not. Although the assumption behind market-based pricing techniques is that prices are a major factor in achieving competitiveness, this can also be attained through non-price competition.
Standard cost pricing Standard cost pricing is based on the cost standards developed in management accounting systems. The standard variable cost per unit is calculated by adding the total variable costs of production, namely the cost of materials and direct labour, and the cost of bought-in components, and dividing this sum by the number of units produced. The steps taken to establish a standard cost price are as follows: 1. Calculate the standard variable cost per unit. 2. Calculate the fixed cost per unit (the running expenses, including administration and selling expenses of the business over a period of time divided by the number of units to be sold in that period.
2. Budgeting, which will take into account the appraisal and other factors mentioned earlier. 3. Planning, which may follow the budgeting process and simply be concerned with deciding on the best method of allocating funds. But the planning process may indicate changes in direction or emphasis that could result in modifications to the budget. The plan will take into account answers to the following questions: ᔢ Is national coverage required or can a regional policy be adopted? ᔢ Does advertising need to be more or less continuous, or can a burst strategy be effective within the peak sales seasons?
A handbook of management techniques : a comprehensive guide to achieving managerial excellence and improved decision making by Michael Armstrong