The Theoretical Basis of Cost Management Accounting Methods in Product Pricing at Manufacturing Enterprises

Determining a reasonable product selling price to bring high efficiency to business activities is one of the important issues of corporate governance. When making pricing decisions, managers rely on many different sources of information with different pricing strategies, but the role of cost information cannot be denied. In terms of economic efficiency, the selling price of the product must cover costs and create profits for the business. The article explores the theoretical basis of the system of management accounting methods, including the variable cost method, the full cost method, and the activity cost method. From there, research methods of product pricing based on cost. The article also explores factors that affect cost-based pricing methods, including business strategy, business scale, market share, competition in the business environment, product characteristics, cost information, level of influence in determining selling price, and business lines.