Rationalizing Pricing Decisions Using Resource Consumption Accounting System Information

The research seeks to demonstrate the role of the resource consumption accounting system in making pricing decisions by relying on accurate data and information.As for the hypothesis of the research, it was represented that the proper application based on the scientific and practical foundations of accounting for resource consumption is reflected in the rationalization of costs and the statement of its impact on pricing decisions. The aim of the research is to demonstrate the possibility of resource consumption accounting system in measuring costs and its impact on rationalizing pricing decisions.In the light of the study that was conducted in the research, a set of conclusions and recommendations were reached, the most important of which are: The resource consumption accounting system provides appropriate information that helps the unit management in making operational decisions such as pricing decisions. A group of factors and considerations that must be taken when making each type of these decisions affect the process of making pricing decisions, which represent determinants of accepting or rejecting the decision. Pricing decisions are among the operational decisions of high importance that are taken by the economic units. Not taking into consideration competitors in the market and their goods. Failure to take into account the fulfillment and achievement of customer satisfaction. The pricing process is a routine process based on adding a profit margin percentage to the total cost calculated according to certain percentages, especially with regard to industrial, marketing and administrative expenses. There is no importance or consideration for the target prices at which the products can be sold compared to the prices of competing commodities. The most important recommendations were as follows: The need for the economic units to pay attention to the use of modern methods of product pricing, especially the use of resource consumption accounting A set of conditions must be taken into account when making each operational decision. For example, when the decision is related to accepting or rejecting an order, it must be taken into account that there is idle energy available, and that the price does not affect the selling prices of the products of the economic unit in the market. The same is the case with manufacturing or manufacturing decisions. Purchasing, as it requires a real calculation of the costs appropriate to this type of decision. As for pricing decisions, they mainly require determining the target price, depending on the study of the market and demand. The same is the case with other operational decisions. Whatever the type of decision, the rules and factors affecting it and the determinants must be studied. And according to a scientific and practical methodology suitable for each type. The need to take into account a set of basic considerations represented by defining goals and general policies as well as developing a clear strategy and then determining the cost of the product from direct materials, direct wages, industrial, marketing and administrative costs as well as following a sound scientific and practical methodology starting from receiving the application to the end of the process Production and this is what was adopted in this research