Concern areas of pricing at domestic enterprises

Abstract

The subject of study is theoretical and methodological principles of pricing at domestic enterprises. In the course of investigations general scientific and special methods of scientific knowledge were used, including generalization and systematization, induction and deduction, system approach, analogy. Economic nature of price was studied and offered to be considered as a monetary equivalent of a product unit (works and services), which shows the product’s value of utility and amount of money spent on buying or selling it. We also determined the factors that affect pricing and distinguished them by the following groups: internal and external factors, factors that are partially or totally controlled by the enterprise, factors that are out of control or the enterprise and factors reducing or increasing the price. The internal factors that are fully controlled by the enterprise include the cost of production (works, services), accounting policy of the enterprise, after-sales service and the use of limited resources, product quality, the brand and territorial placement. The external factors include demand for products, amounts of sales on the market, quality and price of the same products charged by the competitors, buyer’s focus on a high quality and low price, seasonality of demand, tax system, interest rate, price type, solvency of the population, state of country’s economy. The stages of the pricing process include certain internal and external impact factors, study of the state price policy, calculation of minimal and initial price of products by means of the return method based on the information formed within the accounting system. They also provide for calculating the product price by a variety of methods, setting price and analysis of the range of its change, control over the validity of the price and compliance with the law. We also determined the procedure for the costing methods to be implied. And finally, we outlined the basic problems leading to distortion of cost of products (works and services). They include a wrongly selected accounting policy, imperfectness and contradiction of normative legal acts, incorrect allocation of indirect costs, shadow costs available and unjustified overcharge.