Factors influencing the cost-based pricing method: the empirical study of Vietnamese feed mills
The authors have investigated and assessed factors influencing the method of cost-based pricing in feed mills in Vietnam. Data were surveyed and collected from 199 feed mills in Vietnam by 2017 and analysed by using statistical tools. The Vietnamese feed mills include large-scale enterprises and small and medium enterprises. The respondents were mainly administrators and accountants. Notable results were found regarding five factors influencing the method of cost-based pricing in Vietnamese feed mills, namely: (1) capacity; (2) dissimilar expense; (3) level of influence which determines the selling price; (4) information cost and (5) market share. The results of analysis of variance (ANOVA) and regression analysis indicate that cost information has the strongest impact on the cost-based pricing method of the enterprises. The second strongest impact is the scale. Finally, the factors with the lowest impact are the selling price and the market share. Based on the results obtained, the authors present new proposals in the application of cost management accounting methodology in product pricing at feed mills in Vietnam. Firstly, an enterprise should invest in a cost management accounting system to provide cost information that is useful for managers in making pricing decisions, especially when cost information is the most significant factor in pricing methods at feed mills in Vietnam. Secondly, determining the price is an important decision that all companies must implement. The recommendations are given for business managers and accountants regarding the cost-based pricing method in feed mills in Vietnam.