The plant controller of a major corporation was heard to say:

"I don't need all this cost information for pricing. The market decides what to pay for my products so I try to charge as much as the market will bear. If the products don't sell at the price I set, it is fairly easy to reduce prices and adjust to the demands of the market."

Discuss the plant controller's position with regard to manufacturing costs. Do you agree with the plant controller's statement? Why? Why not?

Is it possible for a profit seeking company to operate without knowledge of its costs? What about a not-for-profit entity such as a hospital or municipal government?