What is Costing? What is PrIcing?

Costing- managerial method which assist companies to monitor & to estimate the cost of it’s products at the first stage and to identify the profitable products and customers at the second stage.

The costing system is managing all the company expenses:

Direct expenses-for example the material cost, the direct labor cost
Indirect expenses –for example the marking cost

It’s recommended that the costing system will be base on the operational environment of the organization.

Pricing is the process of applying prices to sales products or services. Obviously, without competition a given company will try to sell its product at the maximal price possible.

The relationship between pricing and costing: Efficient, effective & profitable pricing system is based on a reliable costing system.

It's essential to base the costing system on a costing method that will represent the actual cost of process at the organization.
It’s a great risk to make a pricing decision with no costing system.