ABSTRACT
This chapter deals with relation between price and value, theoretical economic idea of price, actual course of prices in two or three leading industries, and inquiry as to the assistance which scientific costing can give, in its limited sphere, in estimating, fixing or judging the adequacy of a price in particular trades. Economics talk learnedly of how prices are fixed, and, discarding the accidental fluctuations, strips the process to fundamentals. In the Coal Trade, it was pointed out that prices rose during the war, firstly, owing to scarcity and increased demand, and, later, wages rose. A proper costing system, showing the cost of individual articles, will show where the best margins are being obtained, and will throw up those cases, if any, where an adverse margin results. For every manufacturing business, a thorough costing system is essential to Selling Management.
