Chapter 20. Pricing and Costing
Whether a business operates at a loss or makes a profit depends almost exclusively on how much it costs to produce a product and how much the business can sell it for. Costs and prices are closely related, and this chapter goes into some detail concerning ways to analyze that relationship.
Although neither costs nor prices are under your complete control, you can exercise some influence on both. There are many methods of cost control: from reducing the company's payroll to lowering inventory levels to exerting greater control over travel and entertainment expenses.
Regarding prices, another truly wicked variable enters the equation: competition. Competitors are often intent on capturing some of your market share, ...
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