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Title: Costing, price setting and associated interdependencies within the furniture industry : a case study
Authors: Camilleri, Shannon
Keywords: Furniture industry and trade -- Malta
Furniture industry and trade -- Malta -- Accounting
Furniture industry and trade -- Prices -- Malta
Cost accounting -- Malta
Managerial accounting
Issue Date: 2020
Citation: Camilleri, S. (2020). Costing, price setting and associated interdependencies within the furniture industry: a case study (Master's dissertation).
Abstract: PURPOSE: The objective of this dissertation is to determine what costing and pricing methodologies are adopted by the furniture company with respect to the doors division. The efficiency of such processes will also be assessed and recommendations for improvement will be provided. DESIGN: Semi-structured interviews were administered with various representatives involved in the Case Company’s costing and pricing processes so as to attain the research objectives. Direct observation of the processes has been also conducted in order to gain a better understanding of the existing systems. FINDINGS: The findings revealed that the Case Company adopts the same cost accumulation method for both standard and non-standard doors irrespective of their distinct manufacturing process. Moreover, a number of deficiencies were highlighted in the current costing system in particular in regard to labour and overheads which can eventually lead to lack of cost traceability and cross-subsidization. In addition, with respect to pricing it has been identified that pricing is not purely a financial decision, but it also takes into consideration the pricing objective, customer value and competition. CONCLUSION: The study concludes that the existing costing system of this furniture manufacturing company is perceived to be inefficient. For this reason, the study proposes a number of recommendations for improving the existing costing and pricing process. VALUE: The purpose of this study is to raise awareness on the prominence of having an adequate costing and pricing system in place and highlights the potential impacts a company would face, if it fails to implement effective costing and pricing mechanisms.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2020
Dissertations - FacEMAAcc - 2020

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