ABSTRACT
Regardless of firm size, pricing is one of the most critical activities that take place within the firm. The importance of the pricing process to a firm lies in the fact that pricing is the only means through which a firm can generate revenue. Irrespective of whether the firm uses full-cost pricing or variable-cost pricing strategy, the pricing objectives have to be first clearly delineated. Product line pricing strategy is used by firms that produce more than one product or more than one product line. Under this pricing strategy, different product lines may carry distinctly different prices. The skimming strategy is common in industries where new inventions require a substantial investment, such as the high technology industry and the pharmaceutical industry. Irrespective of whether the firm uses full-cost pricing or variable-cost pricing strategy, the pricing objectives have to be first clearly delineated.
