MGAC03H3 Chapter 12: Chapter 12 Notes
Document Summary
Chapter 12 pricing decisions, product profitability decisions, and cost. Manufacturing costs are highly visible in most accounting systems. The higher this percentage, the more important it is for managers to develop, as early as possible, accurate predictions of the revenues for that product. Interrelationships among business function cost categories are highlighted. Customers, competitors, and costs influence prices through their effects on demand and supply customers and competitors affect demand, and costs affect supply. These factors will differ depending on the time horizon of the pricing decision. Csr includes but is not limited to minimum compliance with laws. Csr refers to decisions that ensure the company"s actions are socially acceptable, such as humane slaughter of animals, community awareness and philanthropy, and voluntary disclosure. Important corporate governance issues include compliance with laws against predatory pricing, dumping, or collusive pricing, which lessen competition, put another company at a competitive disadvantage, or harm consumers.
