10. PRICING THE PRODUCT
Price means “the value of products or services shown in monetary form or other exchange currencies”.
The basic method in pricing typically involves using the cost of the product as a base price: price per unit = cost + profit required.
Accounting means to write down items relating to the receipt-payment of money, logically summarize, analyze, and make logical assumptions.
Benefits and purposes of accounting
1. It helps the owner control the assets of business.
2. It indicates the overall operation of the business in a specific timeframe, whether the business has profit or loss.
3. It shows the financial status of the business in a particular period such as assets, liabilities, and capital of the owner.
4. Accounting is a collection of statistical information used in business management, planning the operation, and controlling the business to be successful as expected.
5. To note the trade list respectively and classify such a list.
6. To comply with the relevant Accounting Act for businesses.
Managing warehouses
Planning the warehouse management to have the appropriate level of products is a key factor that makes a business responsive to the customer’s needs. The process of warehouse management will start from the flow into the flow out of products as well as considering where to store the product according to hygienic practices since storing different types of product may require product classification.
The cost of warehouse management may be categorized as:
1. Warehousing cost refers to costs involved in providing services in the warehouse and managing product storage.
2. Inventory carrying cost is the cost of holding the products in storage.