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Pricing Model Research on Activity Based Cost of Liquid Level Instrument of Company X

Author: ZhuZhu
Tutor: ZhangAiMin
School: East China University of Science and Technology
Course: Business Administration
Keywords: Activity Based Cost Pricing model Cost plus
CLC: F275.3
Type: Master's thesis
Year: 2012
Downloads: 42
Quote: 0
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Abstract


With the growth of China economy, the improvement of automation, the rapid development of liquid level instrument market, the competition between domestic and foreign liquid level instrument companies is getting more and more intense. During each bidding, players are always sinking in price war. Company X is a global leading company in manufacturing liquid level instrument. To avoid price war, company set up a clear growth mission that’s, to meet customers’needs and design, manufacture customized products to gain market share. The customer oriented strategy, not only can shorten the distance between company and customers, but also can engine company to think about how to reduce waste, improve products competitiveness. However, customized products will bring more pressure to company and raise more new requirements. How to setup a suitable price that not only let products sell well, but also can avoid price war, is becoming the main issue from company X to resolve.The main purpose of the paper is to resolve the pricing problems of company meets to ensure its price more reasonable and competitive. By drawing the theory and experience of costing and pricing in domestic and foreign products, author researches and designs an ABC cost based price model for company X. The pricing model can improve the competitiveness and increase the growth of company. Furthermore, as a leading mid-small sized company, the pricing model in the paper will bring more valuable and importance experience to other domestic companies.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management > Enterprise Cost Management
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