Synopses & Reviews
Business success or failure is often determined by decisions made in establishing selling prices for products and services. . . . In this clear and readable work, the authors present a good summary of the literature on pricing policy, emphasizing the relevance of costs. They propose a system that involves analyzing indirect costs to distinguish those that may be relevant to pricing in some circumstances but not others. This `analytical contribution accounting' has promise as a tool for many businesses. Students writing papers on costs and pricing policy would find this volume a useful starting point. The bibliography is good. . . . College and university collections.
Using practical examples and simple language, this book develops an accounting system that is a new and functional key to making product pricing decisions. This accounting system, which bridges the gap between full and direct costing, is called Analytical Contribution Accounting. Georges and McGee demonstrate practically as well as theoretically why it is so superior for pricing purposes. The system is based on the relativity aspects implicit in the direct cost method, and on the calculations of a set of differentiated contributions.
Review
The authors, both of whom are professors and consultants, have constructed a new system for product costing and pricing that is a variation of the direct costing approach often used for management decision making. As an introduction to the suubject, they discussin detail all of the traditional costing approaches. Their method involves the making of a `basic calculation,' `universally usable grouping of relative direct costs,' from which additional calculations can be made for specific pricing decisions. Management accountants will want to consider acquiring this work.Journal of Accountancy
Synopsis
"Business success or failure is often determined by decisions made in establishing selling prices for products and services. . . . In this clear and readable work, the authors present a good summary of the literature on pricing policy, emphasizing the relevance of costs. They propose a system that involves analyzing indirect costs to distinguish those that may be relevant to pricing in some circumstances but not others. This analytical contribution accounting' has promise as a tool for many businesses. Students writing papers on costs and pricing policy would find this volume a useful starting point. The bibliography is good. . . . College and university collections."
Synopsis
Using practical examples and simple language, this book develops an accounting system that is a new and functional key to making product pricing decisions. This accounting system, which bridges the gap between full and direct costing, is called "Analytical Contribution Accounting." Georges and McGee demonstrate practically as well as theoretically why it is so superior for pricing purposes. The system is based on the relativity aspects implicit in the direct cost method, and on the calculations of a set of differentiated contributions.
Table of Contents
General Aspects of Pricing Policy
General Considerations About Pricing Policy
The Determinants of Pricing Policy
Pricing Behavior
Pricing Strategies
Cost as Price Determinant
General Remarks About the Relation Between Cost Accounting and Pricing Policy
Cost Concepts Relevant to Pricing Policy
The Role of Cost Accounting Information in Determining Price Floors
The Role of Cost Accounting Information in Price Differentiation
The Role of Cost Accounting Information in Case of Price Changing
The Role of Cost Accounting Information in Case of Pricing Individualized Products (Job Order Costing)
Cost-Oriented Methods of Price Determination
Pricing Decisions Based on Full Costing
Pricing Decisions Based on Partial Costing
Pricing Decisions Based on Cost Accounting Methods in between Full Costing and Partial Costing
Analytical Contribution Accounting and Pricing Policy
Motives for the Choice of Analytical Contribution Accounting (ACA)
Fundamental Principles of Analytical Contribution Accounting
Methodolgy of Analytical Contribution Accounting
Pricing Policy-Oriented Calculation Models
Bibliography
Index