Why count the price of a product at all?
The price of a product is considered for accounting (to account for the movement of goods) and to determine its economic feasibility (management).
We're talking about management now, not accounting.
How feasible is a cost-based pricing system?
It's no secret that for most business entities, especially those committed to the principles of a planned economy is characterized by pricing based on cost rather than on the market.
That is, the approach is this: we calculated the calculation for the product, added a certain delta called profit, and as a result, the net price (excluding VAT) for your final product emerged, according to which it falls on the counter.
That is, the classics of modern management are based, in fact, on the clueless work of pricing based on the calculation of the final cost of a product, calculated according to the accounting policy adopted in this commercial organization, which, in fact, cannot give a 100% objective conclusion about the economic effectiveness of the product throughout the organization. (that is, about its impact on the overall result of the company). Although this approach is at the heart of the decisions being made. And for some reason, everyone thinks it's right.
Or better yet, we make a production plan, and then we calculate the calculation and price for it. Then we run around and tell everyone that our cost is higher than the market price. And then we either freeze the product in the warehouse (well, since it is unprofitable to sell it at current prices), or we successfully implement it with a piece of paper called the "price agreement protocol" without understanding the objective economic result of this within the framework of the entire business.
And the most interesting thing is that in many organizations, entire economic structures have been created for this flawed process, branded as the department of calculation, pricing, cost and analytics, etc.
That is, the calculation is considered only for the sake of the price, it turns out? Well, for management, it is no longer needed for another.
And what would happen if we did not consider it at all for these purposes, but used, for example, ERP or our financial and economic model of the company, which would allow us to clearly understand how much is generated and at the expense of what - upon making changes to it?
But not like it is now: when the price list for the month is approved on the basis of fictitious calculations, which, in fact, no one can verify either by methodology or by actual accuracy.
This is, among other things, the reason why "air" appears in the balance sheet - due to management decisions made on a distorted basis over the past years.
Prices should be formed based on the results of optimal financial and economic selection of an effective production program, taking into account current market conditions and within the framework of a single business model of the company at any given time.
