2023 Meet 8 Akuntansi Manajemen : Penentuan Harga Jual

Summary

This lecture covers the important aspects of pricing decisions in management accounting. It delves into different pricing methods, including cost-based pricing, markup pricing, and target costing. Key factors influencing pricing include demand, costs, and external environments like competition and regulations. The session explains various approaches such as calculating selling prices based on variable or full production costs, and determining markup percentages. It also touches on ethical considerations in pricing, such as fairness and avoiding predatory pricing. The lecture provides a comprehensive understanding of how pricing decisions impact a company’s revenue and profitability.

Takeaways

• 😀 The pricing decision of products is critical for management as it affects the number of units sold and ultimately the company's revenue.
• 😀 In smaller companies, pricing decisions are often made by top management, while in larger companies, divisional managers determine pricing based on several factors.
• 😀 Key factors influencing product pricing include demand, cost, and external environmental factors such as competitors, suppliers, government, and society.
• 😀 The cost-based pricing approach is commonly used to set prices by calculating the cost of the product and adding a desired profit margin, also known as markup.
• 😀 Markup pricing is easy to apply and often used in retail businesses, where the markup is a percentage of the base cost, including desired profit and other costs.
• 😀 Cost-based pricing formulas involve calculating the selling price by adding a markup to the variable, full production, or total costs.
• 😀 For example, with a variable cost of Rp20,000 and a markup of 100%, the selling price is Rp40,000.
• 😀 Full production costs consider both variable and fixed costs to determine the selling price, such as when the total production cost is Rp25,000 with a 60% markup, resulting in a selling price of Rp40,000.
• 😀 Total cost pricing involves calculating the selling price based on all costs, including non-production costs, with a markup applied to the total cost. For example, if total costs are Rp32,000 and the markup is 25%, the selling price is Rp40,000.
• 😀 Markup percentages can also be calculated based on target ROI, unit production volume, and variable or full production costs. The formulas include target ROI, production cost, and unit volume.
• 😀 Target costing is a method of determining product costs based on the price customers are willing to pay, starting from the target price and working backward to design the product accordingly.

Q & A

What is the importance of pricing decisions in management?

Pricing decisions are crucial because they influence the number of units sold and, ultimately, the revenue of the company or entity. This impacts the financial health and strategic direction of the business.

Who typically determines product pricing in small and large companies?

In small companies, management usually sets the selling price, while in large companies, division managers are often responsible for pricing, taking various factors into account.

What are the key factors that affect pricing decisions?

The main factors affecting pricing decisions include demand, cost, and external factors such as competition, suppliers, government regulations, and societal influences.

What is cost-based pricing, and how is it calculated?

Cost-based pricing involves setting the selling price based on the cost of production, plus a markup for profit. The formula is: Selling price = Cost + (Markup * Cost).

What is a markup, and how is it applied in cost-based pricing?

A markup is the percentage added to the cost of a product to determine its selling price. It typically includes the desired profit margin and any additional costs not accounted for in the base cost.

What is the difference between variable cost and full production cost?

Variable costs are the direct costs associated with producing goods, such as raw materials and direct labor. Full production cost includes both variable and fixed costs, such as overhead and administrative expenses.

How do you determine the selling price based on variable production costs?

To calculate the selling price based on variable costs, add the desired markup percentage to the total variable production costs. For example, if the variable cost is $20,000 and the markup is 100%, the selling price will be $40,000.

What is the target costing method, and how does it differ from cost-based pricing?

Target costing is a pricing method that starts with the price customers are willing to pay and then works backward to determine the allowable cost to meet the desired profit margin. Unlike cost-based pricing, which starts with costs, target costing focuses on price-driven cost reduction.

What are the legal aspects of pricing, particularly in terms of competition?

The legal principles of pricing are designed to encourage healthy competition and prevent practices such as price-fixing or predatory pricing, which can harm competitors or create unfair market conditions.

What is predatory pricing, and is it always illegal?

Predatory pricing is the practice of setting prices below cost to eliminate competitors. While it can be harmful to competition, not all below-cost pricing is predatory, especially if done through promotions or discounts, rather than as a long-term strategy to eliminate competition.