ABSTRACT

This research work aims at appraising the impact of cost techniques on pricing decisions. Some of the objectives are to highlights the procedures that may be successfully employed to stabilize prices in order to create stable profit margin and build customers confidence and also to verify how cost techniques enables the manufacturer to develop a product that prospective customers want with the necessary quality to sell in gain price range. The work also reviewed related empirical literature, had a conceptual framework and theoretical framework. The data of this study was mainly collected from primary source through structured questionnaires. The researcher made use of 100 questionnaires. The questionnaires were distributed to the staff of International Equitable Association Nig Ltd, Aba. The company consists of four departments which are accounting department, administration department, sales department, production department. In order to realize the objectives of this study, an econometric tool was used which is t-test. The study findings show that the company analyze the cost of its product and also price its product. It is revealed that cost techniques and pricing decisions have effect on the survival, growth and expansion of the company. The pricing strategy of your company's product enables it to defeat competitors and survive competitions. It can be concluded that cost techniques are of vital importance to pricing decision. Cost is a major variable to be considered in fixing price. Cost has a direct relationship to the price of a product. The cost and price of a product directly affect both sales and volume and profits of the company cost determines the quantity of goods a firm is willing to produce and supply to the market at a given price.