Cost Plus and Full Cost Pricing Techniques in a Public Enterprise
This study examines the pricing strategies adopted by state-owned enterprises in developing economies, with particular emphasis on the principles of cost-plus pricing and full-cost pricing. The analysis builds on the proposition that these techniques, despite their relative simplicity, remain consis...
Na minha lista:
| Autor principal: | |
|---|---|
| Publicado em: |
INP
2025
|
| Acesso em linha: | http://repository.inp.edu.eg//handle/123456789/6244 |
| Tags: |
Adicionar Tag
Sem tags, seja o primeiro a adicionar uma tag!
|
| Resumo: | This study examines the pricing strategies adopted by state-owned enterprises in developing economies, with particular emphasis on the principles of cost-plus pricing and full-cost pricing. The analysis builds on the proposition that these techniques, despite their relative simplicity, remain consistent with the foundations of economic theory—specifically, the equilibrium condition requiring that long-run marginal costs equal price. Accordingly, the application of such methods is argued to approximate an optimal allocation of resources, even in markets characterized by structural inefficiencies.
The cost-plus approach, which relies on historical cost data, offers a pragmatic mechanism for setting prices without requiring direct and continuous assessment of prevailing market conditions. However, the study underscores that the reliance on these techniques alone does not provide sufficient evidence of their effectiveness in achieving resource-optimal outcomes, thereby calling for further empirical investigation within the context of developing economies.
Ultimately, the study concludes that while cost-plus and full-cost pricing represent viable tools for stabilizing and rationalizing price-setting in state enterprises, they necessitate integration into a broader theoretical and policy framework to ensure greater alignment with the objectives of sustainable economic development. |
|---|