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Pricing is a critical aspect of management accounting as it directly affects a company's profitability, cost control, and strategic decision-making. Several methods are employed to determine the price of products or services, each with specific objectives and applications depending on cost structure, market conditions, and business goals. The most commonly used methods of pricing include cost-based pricing, target costing, marginal costing, standard costing, and market-oriented pricing. Cost-based pricing, also known as cost-plus pricing, is one of the simplest and widely used methods. In this method, the selling price is determined by adding a markup to the total cost of producing a product. The total cost includes direct materials, direct labor, and an allocated portion of overheads. For example, if the total cost of manufacturing a chair is ₹1,000 and ________ ___ ______ ________ __________ ____ ____ _________ ___.
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