Abstract
Today our company is using a cost-plus pricing approach to price its product. In fact this method used to price our products can be inadequate in certain cases for our firm. In the usual course this method is used in a monopoly situation. Today, we have to try to notify if our company has a monopoly situation in all its markets for its entire product. Because if we are not in this situation, it can be harmful for our company. That can reach the company's profit and also its bankruptcy. Moreover, by this method, our prices are set only by the offer (only for our company) but not by the demand (consumers) because the price of our products is set by adding a mark-up to cost (Management and cost accounting, 2004). It is true that this method is easy to calculate and to administer; it tends to stabilize markets, insulate from demand variations and competitive factors.
