The effect on pricing decisions of the enterprises of costing methods; comparative analysis of TPL, BOB FRS and TFRS

The aim of this study is to determine the effect of costing methods on pricing decision of the enterprises by a comparative analysis of TPL, Financial Reporting Standard for Large and Medium Size Enterprises (BOB FRS) and Turkish Financial Reporting Standards (TFRS). Also, the aim is to identify which costing method is more effective on pricing. Under that context, independent audits who are responsible of inspecting every item on the financial reports are the main body of the research. The data has been compiled from a sample of 108 independent audits via polling. Also, with an example of two enterprises supervised by independent audits, TPL and BOB FRS; TPL and TFRS were compared to try to explain which costing method would have a more accurate affect on the enterprise's pricing decision, as in the section of costing methods, a cost calculation was made according to data of another sample enterprise by using full and normal cost method, the difference between gross profit and loss, and pricing of the product according to profit margin. According to sample practices and findings of the poll, it is concluded that the normal costing method while identifying the cost is a much realistic method in comparison to full costing method as it is identifying the product unit cost by using the enterprise's rate of capacity utilization. It is also concluded that the financial reports of enterprises based on BOB FRS and TFRS are presenting more realistic and accurate data to financial report users than the financial reports based on TPL.