Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 25

In the section “Controlling your costs,” you see a list of tools to analyze costs. You use the tools to assign costs to your products more precisely. When you change the costs assigned, you can consider changing the product’s price. That’s because a change in the product’s cost changes the level of profit.

For an example, let’s say that you sell hiking boots. In planning, you budget a sale price of $80 per pair. During the year, you start performing cost analysis. You determine that $5 more in machine production cost should be assigned to each pair of hiking boots.

That $5 increase in cost lowers your profit. So you have a few choices to make to maintain the same level of profit. You could decide to raise your price. If you face heavy competition, a higher price may hurt your sales. The other choice is to find ways to lower other costs.

Keep in mind that pricing your product isn’t a one-time event. As you analyze costs, you may need to adjust prices more than once during the year.