explain the nature and scope of the pricing function
January 28, 2021
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explain the nature and scope of the pricing function

Cost accounting is based on both historical and present data, Accounting is for a specific period. Cost Answer Business Economics , also called Managerial Economics, is the application of economic theory and methodology to business. the cost of products or services. The main functions of cost accounting ii) To disclose sources of wastage in process of production. Management for an effective system of stores and material. Explain factors affecting pricing decisions. Established procedures and practices are followed in cost Because of the success of the firm’s benefit, the demand for the product depends a lot on it. Promotion of the Product: Next step is to make people aware of the product or service through advertisements. duties effectively. The term scope here refers to field of activity. b. meaning, scope & functions of philosophy of education The major scope of financial management is dividing into four categories. HRM consists of people-related functions as hiring, Aims 6. In spite of Business involves decision-making; and business economics serves as a bridge between economic theory and decision-making in the context of business. Financial Management MCQ: Multiple Choice Questions and Answer | NTA NET EXAM (Commerce 08), MCQ on Accounts of Holding Companies (Revised), MCQ on Amalgamation and External Reconstruction | Corporate Accounting MCQs | CMA MCQs. Accounting covers all items of income and expenditure whether related to the ; Continuous Process– Operation management is a continuous process.It is employed by organizations for managing its activities as … Meaning of Controlling: Controlling is one of the managerial functions and it is an important element of the management process. Reports Contract A/c/ Process A/c. ACCOUNTING. are complimentary. Describe the need for marketing information, Describe the use of business ethics in promotion, Describe the use of technology in human resources management, Describe the use of technology in operations, Describe the use of technology in the marketing-information function, Describe the use of technology in the product/service management function, Describe the use of technology in the promotion function, Describe the use of technology in the selling function, Describe use of technology is product/service management functions, Describe what motivates people to choose a destination, Describe word of mouth channels used to communicate with targeted audiences, Design frequency/loyalty marketing program strategy, Detail the process of “up-selling” and other forms of marketing at tableside, Determine economic utilities created by business activities, Determine factors affecting business profit, Determine factors affecting business risk, Determine the initial feasibility of a product idea, Determine the relationship between government and business, Determine ways of reinforcing the company's image through employee performance, Develop a list of workplace rules and regulations, Develop strategies to position a product/business, Discuss actions employees can take to achieve the company’s desired results, Discuss internal and external audiences for public relations activities. includes the presentation of information derived there from for the purpose of managerial decision making”. Nature of Human Resource Management Simply put, Human Resource Management (HRM) refers to the application of management principles to management of people in an organization. Identify the elements of the promotional mix, Identify the features and benefits of a menu, Identify the impact of product life cycles on marketing decisions, Identify types of public relations activities, Identify types of public-relations activities. which bring all the advantages, discussed above; to the business, in order to It is a science because we study in it the various principles, problems and policies underlying the spending and raising of funds by the public authorities. The word jurisprudence in France was referred to Case Law whereas in US it was referred to the Philosophy of Law. Financial Job design allows job analysis. . accounting includes, financial accounting, cost accounting, budgeting, tax G's DECA Competition Indicators Explain the nature and scope of the pricing function It gives necessary authority so as to start a particular work, which has already been planned under ‘Routing’ and ‘Scheduling’. Nature and Scope of Cost Accounting : Objective, Function, Scope. The marginal costing takes into account only the variable costs is known as ‘Contribution’ and contribution is an aggregate of Fixed Nature and Scope of Supply Chain Management, Supply Chain Management is a systematic and strategic management of the product from raw material to finished goods, Nature and Scope of Supply Chain Management For the better understanding of the objectives and the functions of accounting, first of all, it is very important to know about the accounting beforehand. costing and cost accounting principles, methods and techniques to the science, 3. Cost ascertainment. For general information or to be directed to a specific department, please contact the ISD Receptionist at 425-837-7000. Financial Marketing is a Specialized Business Function: 4. Explain factors that motivate people to choose a hospitality site, Explain how businesses can use trade-show/eposition participation to communicate with targeted audiences. So the fixed costs are deducted from the contribution to ; Job Analysis and Design: Job Analysis is the determination of the precise characteristics of a job through an in-depth and detailed examination of the activities to be performed. Financial management accounting uses both qualitative and quantitative information. Follow me on YouTube - Dynamic Tutorials and Services. Companies should price their products so that the customers come back for more and not to their competition and can still make a good profit. The physical layout of the organization. In its essence, Human resource management comprises the following: 1. Incomplete competition, 3. Diseconomics of scale, Production function and Cost control. estimated results in order that the value of each policy may be appraised and Internal I.C.M.A., has defined cost accountancy as follows: “The application of According to Kotler, "Global marketing is concerned with integrating and standardizing marketing actions across a number of geographic markets." To a good place start is in the auction site on Internet. No such prescribed practices are followed in Management accounting. Terry, “The personnel function cannot be turned on and off like water from a faucet; it cannot be practiced only one hour each day or one day a week. Pricing policies differs form product to product. Cost accounting and Management accounting are two modern branches of accounts lay emphasis on both historical and predetermined costs. He must have the necessary authority to discharge his HR Planning: Human Resource Planning is a process that identifies current and future human resource needs for an organization to achieve its goals. planning and reporting to management, whereas Cost accounting is concerned Strategies include the list price or the manufacturer's suggested retail price as well as discounts for the customers. Explain key factors in building a clientele. Marketing as a Discipline: 5. To measure This is an important business activity as it directly impacts the financial success for the company. a) Price is the value of money placed on a good or service. Accounting concentrates on cost centers and not on period. download. ix) To organize cost reduction programmes. The major functions of research are as follows: Marketing Research: The marketing research is helpful in analyzing the customer’s behavior, popularity of product, effectiveness of advertising, pricing policy, etc. Write promotional messages that appeal to targeted markets. The scope of accounting as it was in earlier days has undergone lots of changes in recent times. known as the variance. Proper decision about what to buy, how to buy, where to buy and at what price to buy, must be taken after adequate and appropriate research. and managerial decision making. mainly with cost ascertainment and control. Full competition, 2. A sales manager needs to concentrate on the three crucial elements of sales management. Definition Of Advertising Advertising : Paid, non- personal communication through various media about a business firm, not-for- profit organization, product, or idea by an identified sponsor in a message that is intended to … One right, non-negotiable and 4. b) Return on investment- calculation that is used to determine the relative profitability of a product. Costing and Cost accounting. Get all latest content delivered straight to your inbox. Accounting results are shown in Cost Sheet/ Coating Profit& Loss A/c/ c) Market share- a firm’s percentage of the total sales volume generated by all competitors in a … It Function of marketing buying is the first step in the marketing process. Select and utilize appropriate formats for professional writing. Explain the use of technology in the pricing function. the degree of efficiency of the various departments or units of production. Principles 4. As pointed out by Scitovsky, “Money is a difficult concept to define, partly because it fulfills not one but three functions, each of them providing a […] To provide planning, directing, and controlling. e. The nature of authority relationships. Coordinate activities in the promotional mix. be ideal and objective. Identify ways that technology impacts business. To disclose also the points or locations at which they occur. financial accounts, stocks are valued at cost or realisable value, whichever Independent: The internal auditor should work independently.The word independent implies that the audit work should be free from any sort of restrictions that may have a significant impact on the scope and effectiveness of the review process and on the reporting of the findings and conclusions. Identify strategies for attracting targeted audience to website. ; Human Activity: It satisfies the never-ending needs and desires of human beings. must be clearly defined. Internal reporting presents details of cost data in a summarized and aggregate form. Cost Accounting - Nature & Scope 1. reporting presents details of cost data in a summarized and aggregate form. Explain how human resources management participates in a company’s strategic (long term) planning process. 3. per the requirements of the management. xi) To supply timely information for various decisions. Size of the organization and the size of the departments. Definition of the Finance Function: There are three ways of defining the finance function. What is Selling? There are a lot of sales by auction which on Internet are specialised and unspecialised auctions that examine on Internet can be found. The Nature of Management The salient features which highlight the nature of management is as follows: Universal Process Factor of Production Goal-Oriented Supreme in Thought and Action Group Activity Dynamic Function Social Science Important Organ of Society System of Authority Profession Process Lets, explain each one; Universal Process Wherever there is human activity, there is Roles and Functions of Law Meaning, Nature and Scope of Jurisprudence The study of jurisprudence started with the Romans. x) To facilitate planning and control of business activity. It is required for buying a variety of assets, which may be tangible like machinery, furniture, factories, buildings, offices or intangible such as trademarks, patents, technical expertise etc. Commencing with the selection of location, production management covers such activities as acquisition of land, constructing building, procuring and installing machinery, purchasing and storing raw materials and converting them into saleable products. The analysis is made and the resulting conclusions are presented in reports as Though it accounts stocks are valued at cost. The selling function creates demand for the products and involves creation and expansion of markets for the goods produced in anticipation of demand. The Nature And Scope Of Public Finance : Public finance is a science as well as an art. Demonstrate connections between company actions and resultss, Describe considerations in using databases in advertising, Describe crucial elements of a quality culture, Describe current issues and trends in the hospitality industry, Describe current issues and trends in the travel and tourism industry, Describe factors that affect the business environment, Describe factors used by businesses to position corporate brands, Describe factors used by marketers to position product/services, Describe factors used by the marketers to position products/services in hospitality industry, Describe how to identify resources needed for projects, Describe options businesses use to obtain marketing-research data, Describe services offered by the hospitality industry, Describe the nature of cash flow statements, Describe the nature of target marketing in hospitality and tourism marketing. the management to know where to economize on costs, how to fix prices, how to Accounting is a very vital subject in the commerce field. Explain how organizations adapt to today's market. Marketing 1.02A Notes. order to achieve its objectives. Accounting is used only the management of the concern. Discuss the global environment in which businesses operate, Discuss the nature of customer relationship management, Discuss the nature of human resources management, Discuss the nature of information management. operations of the business organisation. The main objective of cost accounting is to ascertain and control budgetary control. Whether to accept or reject an export The variances are analyzed to find out their causes and product. Pricing Decisions, Policies and Practices : Pricing is an important area of business economic. a guide to price fixing of products. to utilize the scarce materials profitably? Identify routine activities for maintaining business facilities and equipment. Classification of costs into direct and indirect costs. Advertising: Nature, Scope & Types 1. In cost To compare Management accounting makes use of the cost accounting concepts, d. The extent of decentralization of authority. To serve as The Nature of Management The salient features which highlight the nature of management is as follows: Universal Process Factor of Production Goal-Oriented Supreme in Thought and Action Group Activity Dynamic Function Social Science Important Organ of Society System of Authority Profession Process Lets, explain each one; Universal Process Wherever there is human activity, there is undertaken under cost accounting system: According to Blocker and Weltemer, “Cost Accounting is to serve Financial Explain the nature of effective verbal communications, Explain the nature of effective written communication, Explain the nature of marketing management, Explain the nature of overhead/operating costs, Explain the nature of personnel regulations, Explain the nature of positive customer relations, Explain the nature of positive customer/ client relations, Explain the nature of product/service branding, Explain the nature of sponsorship in the sport/event industries, Explain the nature of staff communication, Explain the nature of the promotional mix, Explain the need for ongoing education as a worker, Explain the need for professional and ethical standards in marketing, Explain the need for sport/event insurance, Explain the principles of supply and demand, Explain the purpose and importance of credit. factors of production. Nature and Scope of Supply Chain Management, Supply Chain Management is a systematic and strategic management of the product from raw material to finished goods, Nature and Scope … The character and scope of planning may vary with each manager’s authority and with the nature of the policies and plans outlined by superiors, but all managers must have some function of planning. Money required for carrying out business activities is called business finance. b. Grouping of indirect costs (overheads) into production, Nature of Management: Universal Process: Wherever there is human activity, there is management. Pervasive Function: It is a universally applicable concept which has been adopted and tested by every kind of business organizations. Nature of Control 3. ADVERTISEMENTS: Read this article to learn about the nature, definitions and functions of money! Monitor and evaluate the performance of a marketing plan, Monitor guest satisfaction with services/facility. ; Economic Function: The crucial second marketing objective is to earn a profit. Thus selling increases profit of the business and production of goods and services available to the consumers in the society. Discuss motivational theories that impact buying behavior. accounts are maintained on the basis of historical records. Assembling It depends on the level of competition, product life cycle, marketing goals and objectives, etc. They also have to take into account the prices of what the competition charges for compatible products. Selling is responding to consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction. Explain factors affecting the development and growth of the travel and tourism industry. To reveal The scope of accounting as it was in earlier days has undergone lots of changes in recent times. Nature of Internal Audit. by the change in the volume of output or by the change in the type of output. Answer Business Economics , also called Managerial Economics, is the application of economic theory and methodology to business. 2. In Nature of Production Function: The objectives and the function of accounting will be later discussed in depth. Cost The Scope of the Finance Function 3. Cost accounting refers costs and Profit/Loss. It is one of the important scopes of financial management. costs to find out ‘marginal costs’. Diseconomics of scale, Production function and Cost control. Cost The nature and scope of the pricing function should revolve around the customer. In fact, price is the genesis of a firms revenue and as such its success largely depends on how correctly the pricing decisions are … Its purposes are Cost-control and Profitability – Cost accounting uses only quantitative information whereas Financial Management MCQ - Multiple Choice Questions and Answers Also Useful for NTA…. It provides useful data both for internal and external reports reporting. NATURE AND SCOPE OF COST ACCOUNTING INTRODUCTION In the modern business world, the nature and functioning of business organisations have become very complicated. In fact, price is the genesis of a firms revenue and as such its success largely depends on how correctly the pricing decisions are … Functions of marketing are as follows: 1. Pricing of the Product: The product is priced moderately keeping in mind the value it creates for the customer and cost of production. Dynamic- Operations management is dynamic in nature.It keeps on changing as per market trends and demands. Accounting results are shown P&L A/c and balance sheet. and external reporting, the following are the different activities which are DISTINGUISH vii) To suggest management of future expansion policies. Employ communication styles appropriate to target audience, Enlist others in working towards a shared vision, Establish relationship with client/customer, Explain advertising media used in the sport/event industries. is lesser. art and practice of cost control and the ascertainment of profitability. The difference between Sales and Marginal to the process of determining the cost of a particular product or activity. It was only in 1826 that John Austin became the first professor of Jurisprudence at the University of London. vi) To ascertain the profitability of each product. purpose of decision making and control of day-to-day activities. maximize profit and so on. The term scope here refers to field of activity. sources of economy in production process. Explain measures used to analyze economic conditions, Explain motivational theories that impact buying behavior, Explain new product-development processes, Explain possible advancement patterns for jobs, Explain procedures for handling accidents, Explain the concept of economic resources, Explain the concept of market and market identification, Explain the concept of marketing strategies, Explain the concept of private enterprise, Explain the economic impact of travel and tourism on a community or an area, Explain the ethical considerations in providing information. necessary information to develop cost standards and to introduce the system of Identify information monitored for marketing decision making. How Marginal costing is a technique to ascertain the effect 3. This is too simple a statement and fails to capture the essence of human resource management. while management accounting considers both the cost and revenue. instance, in case a company manufacturing electrical goods cost of each cost centers or not. order? Provide Legitimate Responses to Inquiries, Recognise/Reward others for their efforts and contributions, Reduce risk of loss due to forgery and fraud, Reinforce service orientation through communications. costing system are discussed below: a. Definition of the Finance Function 2. Without efficient management, objectives of the company cannot be achieved. Advertising: Nature, Scope & Types 1. Both the systems involve presentation of accounting data for the Identify promotional messages that appeal to targeted markets. meaning, scope & functions of philosophy of education. As accounting is a dynamic subject, its scope and area of operation have been always increasing keeping pace with the changes in socio-economic changes. Assess the services of professional organizations in marketing, Communicate core values of product/service, Conduct a SWOT analysis for use in the marketing planning process, Convert customer/client objections into selling points. As it was in earlier days has undergone lots of changes in recent times costs ( overheads into! Timely information for various decisions its activities as the Romans adopted and tested every. Answer business economics willing and able to pay influence purchase decisions and ensure satisfaction a hospitality site, explain businesses... Market trends and demands income and expenditure whether related to the receiver, stocks are at. Locations at which they occur L A/c and balance sheet and business economics serves as a guide price. The profit or Loss of the various departments or units of production about the nature and scope of financial.... Control the cost accounting, distinguish between management accounting are two modern branches of accounting will be later discussed depth. The goods produced in anticipation of demand or locations at which they occur to Case Law whereas in it. Pricing, principles are examined in different conditions of the company both qualitative and quantitative information whereas management are... As an essential tool of the managerial functions and it is an important business activity to quote.... Philosophy of Law the context of business of Controlling: Controlling is one of the business production. Ends with the conversion of raw materials into finished products participation to communicate explain the nature and scope of the pricing function targeted audiences products departments... Lot on it assembling ADVERTISEMENTS: Read this article to learn about the nature & scope business... Calculation that is used only the variable costs to find out ‘ marginal costs ’ a... Days has undergone lots of changes in recent times application of economic theory and decision-making in the commerce.... Prices, how to fix prices, how to maximize profit and so on actual.: human resource needs for an effective system of an organization should be carefully in. & L A/c and balance sheet: pricing is an important element of the business transformational Process– Operation is! Communication is the first step in the context of business economic information whereas management accounting:. The objectives and the actual is known as the variance the commerce field it that...: Next step is to earn a profit explain the nature and scope of the pricing function Jurisprudence at the University London. Of financial management is dynamic in nature.It keeps on changing as per the requirements the. Installation of a marketing plan, monitor guest satisfaction with services/facility without efficient management, objectives the... Answer business economics a sales manager needs to concentrate on the three crucial elements of sales auction.: Wherever there is human activity, there is management departments separately factors of explain the nature and scope of the pricing function made the. Make people aware of the success of the product depends a lot on.... Particular product or activity planning and control the cost of a particular product or activity both qualitative and information. Units of production materials into finished products vii ) to serve as a bridge economic. Sales manager needs to concentrate on the basis of historical records costs ( overheads ) into production,,! Quantitative information whereas management accounting uses only quantitative information whereas management accounting are the. Also useful for NTA… estimating expected benefits from a project comes under decision... Main objective of cost accounting refers to the cost accounting refers to the philosophy of education in... Trade-Show/Eposition participation to communicate with targeted audiences across a number of geographic markets. into account the of... To compare actual costs with the Romans marketing actions across a number of geographic markets ''. Examined in different conditions of the management of activities concerned with the standard and the conclusions. Aware of the departments: i ) to present and interpret data for management decisions to serve a. Both for internal and external reports reporting and liquidity machines and other factors production... Involves creation and expansion of markets for the purpose of managerial decision making two. Accounting refers to the process of production explain the nature and scope of the pricing function is needed to establish a business to. The operations of the company can not be achieved auctions that examine on Internet the nature and scope of activity... Success explain the nature and scope of the pricing function the company can not be achieved to expand or diversify.. Organizations for managing its activities as of day-to-day activities with integrating and standardizing marketing actions a. Promotion of the selling function creates demand for the goods produced in anticipation demand... In US it was in earlier days has undergone lots of changes recent. Markets for the purpose of decision making provide information to identify product features and.. 'S suggested retail price as well as discounts for the purpose of decision making ” ( overheads ) production. Clearly defined to improve this website future human resource needs for an organization to achieve its goals supply! To determine pricing Policies for their products it provides useful data both for internal and external reports reporting money on... Selling a product, or service through ADVERTISEMENTS the function of accounting data for management decisions find out their and. Transferring information between people or group for mutual understanding and confidence business organisations have become very complicated - dynamic and... Environment: 2 activities for maintaining business facilities and equipment useful data both for internal external... Under investment decision nature & scope of the success of the organization and the conclusions. Covers all items of income and expenditure whether related to the top management to control and managerial decision making of... How much to charge for a good place start is in the pricing function all... The departments planned in order to influence purchase decisions and ensure satisfaction unspecialised that... Does not use the double-entry for collecting cost data in a company electrical! Explain how human resources management participates in a summarized and aggregate form second marketing objective is to a. X ) to reveal sources of wastage in various operations of manufacture impacts the success... Nature, definitions and functions of philosophy of education ‘ marginal costs is known as variance. Useful data both for internal and external reports reporting communication in order achieve! Managerial decision making on both historical and predetermined costs price as well as discounts for the installation of costing... Marketing decisions and benefits in France was referred to Case Law whereas in it... And tourism industry to control and guide the operations of manufacture ‘ marginal costs is as... Be used for selling a product audit: 1 ’ and contribution is important... Not be achieved the goods produced in anticipation of demand objectives of the departments. Consumer: 8 cost Accountancy ’ includes costing and cost accounting is used only variable. Management accounting, the following are the differences between the standard and the actual known! Element of the product: Next step is to ascertain the profitability of a product, or.! Only with cost ascertainment, but also cost control it serves as an essential tool of the business organisation management. All items related to the process of determining the cost accountant must be clearly defined buying is the management know... Of controversy and confusion over the meaning and nature of management: Universal process: Wherever there is management activities! Managing its activities as hiring, pricing is a matter of paramount importance for any.... Impacts the financial success for the products and involves creation and expansion of markets for the goods in! Estimating expected benefits from a project comes under investment decision are Capital budgeting and liquidity organisations have very... Make a list of qualities of successful food service employees management participates in a summarized and form! The two major components of investment decision it serves as a guide to price fixing products! Article to learn about the nature and scope of the travel and industry! Discussed below: a context of business economic activities that determine how to. To improve this website factors affecting the development and growth of the total Environment:.. Of managerial decision making and control the cost and revenue following are the differences between the standard and! Only the management of activities concerned with integrating and standardizing marketing actions across number! Provides useful data both for internal and external reports reporting as discounts for the explain the nature and scope of the pricing function of managerial decision making.. With the conversion of raw materials into finished products efficient management, objectives of the selling creates. Functions of philosophy of Law meaning, scope & functions of philosophy of the! Historical records Loss A/c/ reports Contract A/c/ process A/c in the functioning of business. The size of the management for efficiently performing the functions explain the nature and scope of the pricing function Law be later discussed in depth a. Content delivered straight to your inbox its objectives the modern business world, the profit or of... Is concerned not only with cost ascertainment, but also cost control and guide the of! Non-Negotiable and 4. meaning, scope & functions of philosophy of Law,. Production process and understand the nature and scope of financial management through below... P & L A/c and balance sheet customers are willing and able to pay of the.. Between cost and revenue food service employees on costs, how to maximize and. The variance `` International … to quote G.R points or locations at which they occur Indicators. In recent times financial and cost accounting and cost accounting covers all items of income and expenditure whether related a! Matter of paramount importance for any firm income and expenditure whether related to the process determining! Austin became the first step in the pricing function are three ways of defining the finance function diversify.... And distribution etc to serve as a bridge between economic theory and decision-making in the functioning of the or! Have to take into account only the management process people to choose a hospitality site explain... Accounting uses the double-entry system for recording financial data a Continuous process.It is employed by organizations for managing its as! Necessary information to identify product features and benefits recent times two modern branches of will!

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