Pricing
Free IMA CMA Part 2 (Strategic Financial Management) lesson in Business Decision Analysis. 19 min read, ~2,776 words.
Three pricing approaches: market-based (competitor benchmark), cost-based (cost plus markup or target ROI), value-based (customer perceived value drives price). Target cost = target price − target operating income per unit. Value engineering closes any gap between current cost and target cost. Short-term equilibrium price sets marginal revenue = marginal cost...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2C3
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