Product costing: calculation methods and pricing

Product costing

• The input data for costing: cost element, cost center and cost unit accounting.
• Operating area and overhead: Direct and overhead costs in costing.
• Calculation approaches in production, trade and services.
• Terms from internal accounting: Imputed depreciation and imputed interest.
• Pricing leeway and price elasticities.
• Surcharge calculation.
• Activity-based costing.
• Total Cost of Ownership - Life-Cycle-Costing.
• Target costing (target cost accounting).

Calculation in production operations

• Costs, margins and expected returns.
• Communication with cost controlling and the shareholders.

Calculation procedures in the service company

• From the offer price to the cost price.
• Handling and logistics costs.

Aspects of pricing

• How high is the price that consumers are willing to pay for the product?
• What is the price of other suppliers offering a comparable product?
• How high are the supplier's own costs that he has to incur for the purchase or consumption of resources in order to be able to manufacture the product and put it into a saleable condition (cost price)?
• Are there unique selling points, innovation leadership, strong brand values for products and product ranges?
• To what extent are the products substitutable by the competitor GEPAART with a price-sensitive clientele?