• Firm journal archives

  • Firm Journal categories

  • Pricing by Manufacturer

    As a manufacturer a pricing decision requires the support of accurate, timely accounting records.

    Cost-plus pricing is the most commonly used pricing technique for the manufacturer.

    This involves establishing a price composed of direct materials, direct labour, factory overhead, selling and administration costs, plus a desired profit margin.

    In other words

    Price= (manufacturers costs in dollars) + (desired profit margin in dollars)