The Role of Functional Analysis in Rationalizing Pricing Decisions: An Empirical Study

Ali  Ahmed Maher Mohammed; Qasim  Habeeb Nashid Jay

المؤلفون

Ali Ahmed Maher Mohammed Department of Accounting, faculty of Administration and Economics, University of Kufa
Qasim Habeeb Nashid Jay Department of Accounting, faculty of Administration and Economics, University of Kufa

الكلمات المفتاحية:

Functional Analysis Technique، Product Functions، Pricing Decisions، costing System

الملخص

The current paper aims to explore the role of the two functional analysis techniques in rationalizing pricing decisions, by employing the functional analysis technique in determining the performance of product functions and classifying them into a main component and a secondary component to achieve the possibility of excluding functional and their costs that do not add value based on the renewed desires of customers to reach a balance between functionality, cost, and price. To achieve this goal, the current research applied procedures and steps to reach a set of results through which it can be proven that pricing decisions are affected by the cost information generated from the two functional analysis techniques, so one of the companies of the Ministry of Industry and Minerals - the General Company for Electrical and Electronic Industries - a laboratory was chosen heaters - heater product (120) liters as described by the research community and its sample. The findings show that the functional analysis technique provides the possibility of identifying functions that do not add value from the customer's point of view and working to exclude them, improve them, reduce costs, or achieve the optimal level of functionality that the customer expects through product redesign. To solve problems related to improving product functionality creatively and innovatively, using the information generated by the functional analysis technique that can be used in making pricing decisions.

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