4.2 Calculation & Pricing

In costing, the costs are determined in order to determine a sales price. In a company, all costs must be included in the calculation (full cost accounting). The calculation serves in particular to determine the price, because the sales price of a product or service must cover all the company's costs.

The calculation is used in the business plan to calculate the price. To calculate means to approach the selling price step by step. That means: 

• The market price is the price achieved by competitors in the market. This price must be researched in the market and among the competitors.
• The cost price (also called full cost price) is the price that includes the total costs of the enterprise. This is to be calculated.
• The selling price (also called the offer price) is the price at which the goods are to be offered on the market. This must be determined by weighing up the market price and the cost price.