I need for you to read the article, then answer the following question in eight hundred words. You must have at least two references in the reply and a reference citation. I will only except

In the article, "Pricing custom products without a standard cost system," Jean Cunningham discusses the issues of pricing a custom product. What are the two methods she discusses and which method would you choose as an entrepreneur and why?I think I have it now ...

We did agree on the $15.

PRICING CUSTOM PRODUCTS WITHOUT A STANDARD COST SYSTEM Cunningham, Jean Cost Management; Jan/Feb 2006; 20,1; ProQuest Central pg.4S PRICING CUSTOM PRODUCTS WITHOUT A STANDARD As companies start their lean journey, they are eliminating but are not sure what to do about pricing-particularly This article the standard cost accounting systems, for custom products. proyldes a bridge from the standard cost world to lean accounting. COST SYSTEM JEAN CUNNINGHAM hile preparing based on what will the market bear or what for custom products. "What will the customer pay' is not always an easy value for the customer or the company to identify. So this question evolves thusly: "How do r price a custom product without our standard cost system?" To answer this question, first decide what you want to achieve in selling the custom product. Do you want to add to bottom line profit incrementally without regard to margin percentage? Or do you want to use the custom product to increase bottom line profit only if it improves margin percentage? The purpose of this article is to provide a model to position the pricing without a standard cost system. The model provides a means to price the product while accounting for the true variable cost components of the product, the material, and the utilization of constrained resources. The pricing model assumes that all other costs of the organization are not variable and will be consumed regardless of whether the custom order i old. The model also assumes will tbe customer pay, not on your company's COSI structure. In his keynote addre 5, Dr. Tom Johnson described it beautifully. " '" it is not knowing the product cost, but what it costs to make your products." The customers will pay what they will pay. Nonetheless, concerns and questions linger a ernen Accounung (or the Lean Organ'tatlull. width WOII the 2004 5htnKo in rese ,(h. Rea] Numb"rs is bM don I, r upui,net as CFO of l.antech. I" . durillg it leall iovr n,y. Itu,' uqu"nt(~ $I'~akl On tit. tOpIC of lean related 10 A COUllllng, /o "II