Write short notes on Contract cost and Price Management.

Q: enefits of cost classification.

A: Classification of Costs essentially means the grouping of costs according to their similar…

Q: Define and provide an example for price fixing.

A: Price fixing is the agreement among the competitors where they agree to sell the product at the set…

Q: ILLUSTRATE THE VARIOUS COST CLASSIFICATIONS. (PLEASE INCLUDE PHOTOS OR TEXT FOR THE EXPLANATION)…

A: Cost can be understood as the price which is being paid for acquiring a specific resource such as…

Q: Compare and contrast price and nonprice competition.Describe the conditions under which each form…

A: In the price competition, the companies will give importance to the price of the products and…

Q: What types of information can a supplier provide that are useful during new-product development?

A: Suppliers  A supplier refers to the individual or the organization that supplies or provides goods…

Q: Explain price lining.

A: Price is the monetary value paid for a product in a marketing exchange; it could also be things you…

Q: Product should have exchange value and must be capable of being exchanged between seller and buyer…

A: Leadership is the act of leading a group of people or an organization. It helps in motivating…

Q: Discuss the reasons why suppliers are sometimes reluctant to share price  information with buyers,…

A: Managers are responsible for overseeing the operation and other stages involved in the creation of a…

Q: List the advantages of fixed price contracts.

A: A fixed price contract is a type of contract where the contractor commits to complete a specific…

Q: Discuss the importance of a concrete, well written proposals and establishing buyer vendor…

A: The basic relationship of a buyer and the vendor is based on the sales representatives who are…

Q: What are the factors that affect Options contracts? Which is the most and least significant of the…

A: Options contract can be defined as an agreement that is made between two or more parties to…

Q: Explain what are trade margins and how they relate to the pricing for a producer ?

A: Trade is the exchange of goods and service from one point to another. From one owner to another…

Q: How do legal and regulatory forces influence pricingdecisions?

A: Pricing decisions between competitors in order to raise prices for particular products and services…

Q: Discuss the advantages of electronically transmitting and receiving purchasingdocuments between a…

A: The advantages of electronically transmitting and receiving purchasing documents between a buyer and…

Q: Explain the information which a buyer wil gather about a supplier before contract negotiation

A: The buyer-supplier contract negotiations are generally based upon the fairness present in it.  It is…

Q: Discuss the impact of the economy on a company’s pricing

A: The pricing policy is a tool for achieving the aims of a planned company, it helps the company to…

Q: Explain the use of yield management in pricingdecisions.

A: Greater understanding allows you to better meet the needs of your target market and, as a result,…

Q: Examine the three major pricing methods that firms employ.

A: Pricing Methods- The ways in which the goods and services prices can be calculated by considering…

Q: Describe the procedure for setting the right price

A: In setting the right price, a business organization will consider the price to acquire the goods,…

Q: What are the different kinds of price adjustments? In which situations do companies use each one?

A: There are seven price adjustment strategies:1. Discount and allowance pricing- Reducing prices to…

Q: What are the benefits of Price skimming?

A: Pricing skimming: It is a strategy where high prices are set for the product initially when a new…

Q: Write down and explain the points that companies should pay attention to when determining their…

A: The pricing policy is the definitive answer to the question that arises. A systematic pricing…

Q: Discuss the Penalty Clauses for fixed price contracts

A: The contract occurs where payment is not dependent upon the resources that expand the time is known…

Q: Should the company raise the price?

A: Process selection mainly depending the net profit earned by each of the method. Here, we can…

Q: Describe the steps taken in setting a final price.

A: Price is the amount paid for acquiring any products or services. Pricing is the process by which…

Q: Describe two possible causes of a favourable direct material price variance

A: Direct material price variance is the difference between the price paid to purchase direct materials…

Q: Identify and describe the main types of discounts that are used in the pricing of business products.

A: Discounting is the method of evaluating the current value of a payment to be obtained in the future…

Q: Discuss the various pricing methods that can be used by a vendor along with the main features.…

A: Price can be distinct as the amount of payment that the customer pays to the retailer in return for…

Q: Define the term price skimming?

A: A company will charge a customer a price in exchange for purchasing a good or service. It is the…

Q: Compare the two types of purchasing methods namely contract purchasing or spot purchasing in terms…

A: Cost of quality (COQ) is characterized as a procedure that permits an association to decide the…

Q: Describe the legal constraints on pricing.

A: Pricing. A process of fixing up the value which will be received in exchange for goods and services…

Q: Explain table of actual market price and actual cost

A: Actual market price implies the sum for which resources might be traded or common commitments…

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows: 

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”