The Product Pricing Decision Based On Activity-based Costing

Due to the impetuous development of advanced manufacture technology (AMT), some fundamentally changes inside and outside an enterprise have taken place. They make manufacture costing not meet operation decisions' needs, so the activity-based costing (ABC)based on driver theory comes into being, which can refrain from distortion of the traditional costing to cost information, and enhance the basic function of cost information in operation decisions such as pricing. Because product pricing is related to an enterprise's existence and development, research on the theory hasn't made virtual progress, this paper considers activity-based product pricing decision as its research direction.This paper constructs activity-based cost behavior models. Then based on the common model, it constructions activity-based cost-volume-profit (CVP) model. On the basis of the model, it constructs full cost, variable cost, variable and activity cost plus pricing models based on the common cost model, and simplifies the last two models. What's more, on the consideration on Elasticities, it constructs optimal product line pricing decision model based on ABC.This paper still studies new product pricing decision under ABC, constructs new product pricing decision models. On the basis of these models, it researches pricing countermeasures. At last, this paper studies competition pricing and product pricing for taking advantage of unused production ability.