If employees are expected to apply the principles of costing and pricing to a business venture, the employer or company needs to provide employees with the required knowledge and skills to do so.
What does it mean to apply the principles of costing and pricing, in order to determine the profit margins for a new venture?
You would need to:
- Explain the criteria of a price setting policy for a new venture
- Analyse internal and external factors that impact upon pricing decisions
- Demonstrate an understanding of the relationship between costs, revenue and profits
If you understand the principles of costing and pricing, you would be able to determine future profitability by establishing whether the costs involved will generate sufficient profit to justify the launching of the new venture.
To take you back to our statement “…the Employer or Company needs to provide Employees with the required knowledge and skills to do so. “ : This is only possible if the Employer or Company can provide sufficient and trustworthy training, to their staff.
Academy Training Group (ATG) is able to assist you with this training.
Contact ATG for any queries regarding our course for Applying the Principles of Costing and Pricing to a Business Venture.