Pricing trends for management accountants — like much of the management accounting profession — have been transformed with ongoing technological advancements. Success in a changing environment requires management accountants to understand emerging trends, with a focus on the customer perspective and business partnerships. Accordingly, pricing needs to shift from fixed costs to strategic pricing and value-based pricing. By understanding customer value perception, management accountants can help set prices that maximise both customer satisfaction and company profitability. Working closely with other business areas will also give management accountants the opportunity to provide valuable insights that drive strategic decisions.
The theory and practice of pricing has been revolutionised since the late twentieth century and management accountants need to update their skills to take full advantage. Vitally, management accountants must switch from their traditional, internal, focus to a customer perspective with an external, value focus.
Based on research undertaken by Professor David Dugdale in the writing of his textbook Strategic Pricing and Management Accounting, this report summarizes changes in pricing theory and the impact of those changes on the role of the management accountant. It particularly focusses on value-based pricing and highlights a number of opportunities for management accountants to work as business partners with marketing managers.