Self-Cost as the Basis of Pricing in Сompany

Of all the advantages, that business can achieve there is one very powerful and available to any company - the price advantage. Pricing is an extremely sensitive lever of the impact on profit: very small changes in the average price lead to huge changes in operating profit. However, the issue of price formation from the point of view of accounting and cost reduction is not adequately covered in modern economic research. The key idea of the work is to estimate the cost-based methods of price formation, as well as to develop recommendations for optimizing pricing by reducing the cost of production on the example of OOO "Tsental". The main method used in the study is a factor analysis, which is used in assessing the influence of various factors on the self-cost of production of the company. In addition, based on the data of OOO "Tsental", cost-based pricing methods were tested, results were evaluated and a method of price formation suitable for the company was identified. An important and practically significant result of the work is the developed recommendations for optimizing pricing policies, mainly by improving the accounting and calculation of the self-cost and its reduction.