APPRAISAL OF ACCOUNTANTS’ ROLE IN STRATEGIC PRICING FORMULATION

APPRAISAL OF ACCOUNTANTS’ ROLE IN STRATEGIC PRICING FORMULATION

 

ABSTRACT

In any flourishing business today, pricing has been their key function.  This is so because the rate with which modern business is growing coupled with the worldwide inflationary trends, more dimensions will be added to the problem of pricing.  In any market economy where goods and services are traded, pricing is very crucial as the prime mover of trade, for instance, pricing ration out scarce good.  This is a rise in price of good indicates that the good is in relative short supply. Pricing can be used to discourage unnecessary pressure on some commodities; this is price serving as a gauge.  Price indicate the direction of want and also pricing as a means by which factors of production are awarded and as a result, many professionals in business are beginning to play major roles in pricing decision and strategic pricing formulation. This study was done on the appraisal of accountants’ role in strategic pricing formulation. Its objectives were: (i) to determine the extent to which accountants participate in strategic price formulation; (ii) to find out if accountants are responsible for the computation of a company’s product worth alongside considerations for the company’s cost of capital and owners’ returns; and (iii) to examine the functions of accountants in strategic pricing formulation development. The design of the study was a cross sectional survey. Primary data were only used and were collected from a randomly selected 95 accounting staff of PRODA and JUHEL Pharmaceutical Co. Ltd. Enugu State Nigeria. All the data collected were presented and analyzed using cross-tabulations, frequencies and percentages. Hypotheses were tested through the use of chi-square (X2) and Pearson’s Product Moment Correlation Coefficient (r), which was run on SPSS version 15.0. The study found that accountants significantly participate in strategic pricing formulation. It further found that they (accountants) are responsible for the computation of companies’ product worth alongside considerations for cost rof capital and owners’ returns. Finally, the study found that accountants have significant functions/roles that they carry out in strategic pricing formulation. It was however concluded that accountants play chief roles in strategic pricing formulation. They were recommended for constant trainings and development.