Business Economics - Costing and Pricing

Business Economics - Costing and Pricing

A business has costs because it has to purchase inputs of productive resources (labour, land and capital) and combine them to produce output. The cost of producing any output is determined by the quantities and prices of the inputs used.

One of the teaching uses of the Web is to provide access to additional and current material to support the more traditional case study approach. Many written cases are available from the European Case Clearing House, which is a subscription based service based at Cranfield University:

The Web offers excellent opportunities for investigating ongoing developments within organisations and keeping class discussions current. The following two sites offer such a supplemental role in the teaching of costing and pricing strategies.

Activity Based Costing

This site presents an introduction to Activity Based Costing (ABC) in slide presentation format. Topics include a typical situation in a small manufacturing firm, major factors for determination of market price and traditional cost accounting (TCA). A bibliography of other ABC sites is annotated for further reading and research.

Further Reference

Classroom Expernomics

From this page search for Economics Efficiency and the Role of Prices: Market Sessions for Use in the Classroom by Stuart Mestelman, (Fall,1994).

The site presents classroom games designed to maintain students' interest. However, it can also be used by students as a useful example in the area of costing and pricing. It provides excellent exercises for both staff and students to follow.

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