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...
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2025
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| Online dostop: | http://repository.inp.edu.eg//handle/123456789/6244 |
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| _version_ | 1853147126118219776 |
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| author | Watkin, E. E. |
| author_facet | Watkin, E. E. |
| author_sort | Watkin, E. E. |
| collection | DSpace |
| description | 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. |
| id | oai:repository.inp.ed.eg:123456789-6244 |
| institution | My University |
| publishDate | 2025 |
| publisher | INP |
| record_format | dspace |
| spelling | oai:repository.inp.ed.eg:123456789-62442025-08-25T06:49:08Z Cost Plus and Full Cost Pricing Techniques in a Public Enterprise Watkin, E. E. 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. تسعى هذه الدراسة إلى تحليل استراتيجيات التسعير المعتمدة في المؤسسات الحكومية بالبلدان النامية، مع تركيز خاص على أسلوبي التسعير على أساس التكلفة الإضافية (Cost-Plus Pricing) والتسعير على أساس التكلفة الكاملة (Full-Cost Pricing). وتنطلق الدراسة من فرضية أن هذه الممارسات، رغم بساطتها، تتسق مع المبادئ الأساسية للنظرية الاقتصادية، وبالأخص شرط التوازن الذي يفترض مساواة التكلفة الحدية طويلة الأجل مع السعر. ومن هذا المنطلق، يُفترض أن تطبيق هذه التقنيات يمكن أن يسهم في تحقيق تخصيص أقرب إلى الأمثل للموارد، حتى في بيئات تعاني من اختلالات هيكلية في الأسواق. يرتكز أسلوب التكلفة الإضافية على بيانات التكاليف التاريخية، ما يجعله أداة عملية لتحديد الأسعار دون الحاجة إلى الاعتماد المباشر على تقييم ديناميكيات السوق أو توافر معلومات دقيقة حول قوى العرض والطلب. غير أن الدراسة تشير إلى أن اعتماد هذه الأساليب وحدها لا يكفي لتأكيد فعاليتها في الوصول إلى تخصيص أمثل للموارد، وهو ما يستدعي مزيداً من البحث والتحقق التجريبي في سياقات الاقتصاديات النامية. وتخلص الدراسة إلى أن هذه الاستراتيجيات تمثل خطوة مهمة نحو بناء أنظمة تسعير أكثر واقعية واستقراراً في المؤسسات الحكومية، لكنها تظل بحاجة إلى تطوير إطار نظري وتطبيقي أكثر شمولاً لضمان توافقها مع متطلبات التنمية الاقتصادية المستدامة. 2025-08-25T06:46:08Z 2025-08-25T06:46:08Z 1964-12 http://repository.inp.edu.eg//handle/123456789/6244 Memo;572 application/pdf INP |
| spellingShingle | Watkin, E. E. Cost Plus and Full Cost Pricing Techniques in a Public Enterprise |
| title | Cost Plus and Full Cost Pricing Techniques in a Public Enterprise |
| title_full | Cost Plus and Full Cost Pricing Techniques in a Public Enterprise |
| title_fullStr | Cost Plus and Full Cost Pricing Techniques in a Public Enterprise |
| title_full_unstemmed | Cost Plus and Full Cost Pricing Techniques in a Public Enterprise |
| title_short | Cost Plus and Full Cost Pricing Techniques in a Public Enterprise |
| title_sort | cost plus and full cost pricing techniques in a public enterprise |
| url | http://repository.inp.edu.eg//handle/123456789/6244 |
| work_keys_str_mv | AT watkinee costplusandfullcostpricingtechniquesinapublicenterprise |