The assignment - Background information - You are the financial Essay

The assignment - Background information - You argon the financial managing director of a large, ficticious company called Manac plc, which - Essay ExampleThe target usefulness of the company is not being achieved and as a result of that it is impacting the entire organization. The company has also adopted several cost cutting methods, which squeeze the production and reduced competitive advantage of the degraded. The report will mainly focus on cardinal areas of strategic management accounting. In the first part, it will mainly emphasize on the fabrics and concepts on determine decision. In the second part, the study will primarily focus on role of standard be and variance analysis in management accounting. The third part is about uncovering the pros and cons of activity base costing. The report will then conduct an in depth analysis of the strategic management accounting. On the basis of that a conclusion will be drawn and some recommendations will be made. Models and Conce pts on Pricing Decision The organization is currently dealing or facing challenge pertaining to the issue of profit maximization. The problem is that company is not achieving its target profit. According to several authors, maximization of profit is only doable only when the organizations are able to implement the models and concepts used in pricing decision. ... In order to list an example, if the products of a company are impairmentd higher than its competition it may suffer losses and slow income growth. much(prenominal) firms ignore the impact of pricing, but later understand when it gets actually affected. Similarly, if the prices of products and services of a company are extremely low, their return of profit will be also low. Hence it is important for every firm that they should consider adopting some of the best models or principles based on which they can afford pricing decisions. The model should also satisfy the two intentions of pricing. The first one is to achieve m aximum profit and the second objective is to meet the commercialize demand. One of the most common models that are considered by the companies is consumers preferences and demeanor. According to this model, it is the consumers who make the purchasing decision and other factors hardly play any role (Heidhues and Koszegi, 2005). Therefore if the firms close monitor the buying behaviour of the consumers, companies will be able to take its pricing decisions with ease. For example, if the study of consumer behaviour reflects that consumers prefer products that are priced low, the companies will be able to make the prices of their products low by reducing the overall cost. The next model pertaining to pricing decision of a firm is about the market equalizer. Market equilibrium is actually a situation considered by the firms while developing the pricing strategies. This is actually the stage where the market demand and market supply overlaps with each other. The market equilibrium (dem and and supply) is highly responsible for driving price changes (Vives, 2010). For example, if the price of a 3D TV is low in a particular market, the