COST-BASED PRICING

A CASE STUDY

Resumo

This study introduces a pricing methodology based on absorption costing tailored for a major Brazilian corporation. To this end, our research problem is the development of an accounting-based pricing model for a logistics company, allowing for the consideration of proper stakeholder revenue directives as well as the assurance of profitability given the structure of the product sold (freight). To achieve this, the study involved creating a comprehensive cost database using the absorption costing system within a logistics company in Brazil. The design ensures the pricing model considers stakeholder revenue directives and guarantees profitability within the freight product structure. We draw on cost and managerial accounting theories and cost-based pricing theories, the research establishes a pricing formula that aligns with stakeholder revenue expectations while ensuring adequate cost coverage. The study reveals a substantial increase in profitability compared to existing models. By measuring the yield between tariffs, it demonstrates the effectiveness of the proposed formula in meeting stakeholder return demands while maintaining economic competitiveness. This study contributes a cost-based metric for pricing in logistics, grounded in real case study data. It facilitates ongoing discussions and potential refinements in pricing strategies, offering valuable insights for logistics companies and cost scholars.