Pricing from a Financial Point of View

Abstract

This paper presents a theoretical explanation of the behavior of fixed and variable costs in the pricing process based on the structure of an income statement. Initially, global concepts referring to views from different authors on marketing and cost basics are introduced, which will contribute to the topic’s structuring. Afterwards, a detailed explanation of the proposed model for pricing analysis from profit margins will be given, which mainly expresses profitability indicators and, for this case, will serve as criteria for strategic policymaking at functional areas from the enterprises. Finally, with a hypothetical case, the relationship between financial model and expected results in organizations will be shown.