Strategic pricing in the field of management accounting: Implementation in gear production business

The improvements in the production field have caused the products to be in a better quality based on customer orders and requests. The product costs that are identified with usual cost structures will not show the correct pricing decision and business probability at a busy competitiveenvironment and will be insufficient at developed production field. The quality, pricing and market conditions of competitive businesses costs must be considered when deciding on product pricing. With this taken into account, the product pricing decisions of the businesses depend on the product costs and the active control of these costs. For this purpose, as part of managements' strategic accounting, the control of the costs plays an important part in the business's pricing decision and the profit arising as a result of the decision. At this stage the firm should; when making the pricing decisions firstly identify the targeted customer portfolio, the customers' demands and the customers' target price in order to determine the profit and business benefits strategy correctly. The aim of this practice is to create collaboration and strength in managements' strategic decisions and enable the joint work of the departments (production, accounting, finance and marketing) to identify one of firms' important decision which iscost and pricing decision. In terms of managements' strategic accounting, this aim will allow the business to form the cost and pricing decision by creating a cost process at a production business. This way the product costs will be identified correctly and the real reason-result relationship between the activities will be seen by the management team. Through this system the management will identify the correct product prices and with this in hand the most profitable product and customer will be seen.