Pricing: Definition

Pricing means fixing the selling price of an article. The pricing of an article already
produced should be preceded by and based on costing, but other factors are also taken
into account (e.g., price of competitive articles, price trends, etc.).

In cases where the pricing of an article has to be done before its actual production, it is
preceded by estimating rather than costing, and it has to be based on the outcome.

However, in such cases, the process of estimating the figure itself must be based on
actual cost data, adjusted to anticipated changes in the relevant items of cost.