VALUE PRICING IN THE CPA INDUSTRY - Research Paper Example

Additionally, coming up with a price is dependent on measurable factors that enable the supplier and the client to have transaction agreement. The key measurements of price include fixed price, unit price; commission fee; subscription fee; and reimbursable/time and material fee. For this paper, the discussion focuses on the fact that cost is essential in the determination of the price of any commodity. The discussion also elaborates the need for reasonable and competitive pricing over just mere pricing.

The economic times (n.p), reveals that pricing is the process of attaching monetary value to a commodity. In order to attain a reasonable price for a commodity The Economic Times (n.p) further highlights that the value of the commodity for sale has to be determined using research, complex calculation sets, and understanding and taking risk ability. Additionally, the right pricing strategy has to be considered to ensure that conditions like product market segments; consumers’ ability to pay; conditions in the market; actions from competitors; costs of inputs; and trade margins are well evaluated and included.

In this regard, costs should be determined by the market and the overall condition of the pricing control by the government. When considering the market, commodity prices are determined have to involve a costs analysis of every element that effectively works towards the final total price of the seller (Englebeck 290). This individual elements considered in cost analysis are labor, overhead, profit or fee, expenses, materials directly or indirectly used in the production of the commodity, and overheads.

However, these elements depend on the type of purchase which then would mean that they increase the cost or reduce the cost and as a result, the price of the commodity in question increases or reduces respectively. Conversely, price analysis involves comparing