To read this content please select one of the options below:

The choice of a cost base for product pricing

D. Govender (Department of Accounting and Auditing, M L Sultan Technikon, Durban)

Meditari Accountancy Research

ISSN: 1022-2529

Article publication date: 1 April 2000



The purpose of this paper is to report on the incidence of the choice between full‐cost and variable‐cost pricing, and to examine the factors that could possibly influence this choice. The findings indicate that whereas 74,5% of the firms use full cost for pricing their products, only 25,5% use variable costs. The research provides evidence that supports the size of the company, product type, stage in product lifecycle, materiality of fixed overhead costs and the objectives of the company as significant variables influencing the choice of the cost base for product pricing.



Govender, D. (2000), "The choice of a cost base for product pricing", Meditari Accountancy Research, Vol. 8 No. 1, pp. 47-67.




Copyright © 2000, MCB UP Limited

Related articles