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The goal of pricing decisions is to set a price that maximizes profit.
A simple pricing decision involves charging the same as competitors for similar products and services.
A complex pricing decision involves: Understanding customers Knowing what competitors offer and charge Adjusting quickly to changes in markets, vendors, and customers
Companies that make simple pricing decisions often try to increase sales by making small adjustments, such as purchase discounts, volume discounts, and purchase allowances.
Cost management is the process of defining a project's budget and identifying all potential costs and inputs. This includes labor, materials, equipment, and any other expenses. Cost management can help a business keep its overall budget under control. Continuous monitoring, cost control, and cost reporting contribute to a company's long-term financial health.
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