Scribd
Upload
57 views

RRL - RS Scratch

The document discusses the relationship between costs, pricing, and financial performance of businesses. It states that properly managing costs is important for business operations to avoid suffering negative impacts. The study discussed found that controlling costs has an effect on the financial performance of manufacturing firms. Businesses must ensure optimal cost control as both positive and negative effects on different financial performance measures can occur if not managed well. Related studies discussed found that inflation impacts the financial performance and gross profits of businesses, as well as reducing purchasing power and potentially decreasing sales and the number of MSMEs over time.

Uploaded by

Ritzlove Mendez08
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
57 views

RRL - RS Scratch

The document discusses the relationship between costs, pricing, and financial performance of businesses. It states that properly managing costs is important for business operations to avoid suffering negative impacts. The study discussed found that controlling costs has an effect on the financial performance of manufacturing firms. Businesses must ensure optimal cost control as both positive and negative effects on different financial performance measures can occur if not managed well. Related studies discussed found that inflation impacts the financial performance and gross profits of businesses, as well as reducing purchasing power and potentially decreasing sales and the number of MSMEs over time.

Uploaded by

Ritzlove Mendez08
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Cost of Product/Service

Pricing is the method used by a Business to determine the selling prices of its products

and services (Kawira, 2021). According to Oluwayemisi et al., (2022) if the Business costs are

not thoroughly managed, the business operations will suffer as a direct result. The study

investigated the relationship between cost control and the financial performance of selected

Nigerian manufacturing firm; as a result, this study concluded that cost control has an effect on

the financial performance of manufacturing firms. The study recommended that businesses must

ensure optimal control of a business costs as any attempt to employ as a positive change agent

for a specific financial performance measure, if not it can lead to an unfavorable effect in another

measure.

Reference:

Kawira K. D. (2021): The Effect of Pricing Strategy on the


Performance of Micro, Small and Medium Enterprises (MSMEs) in Kenya. Journal of
Entrepreneurship & Project Management, Vol 5(1)pp. 29-44

View of Cost Control and Financial Performance: An Empirical Investigation of Selected


Quoted Manufacturing Firms in Nigeria. (n.d.).
https://dj.univ-danubius.ro/index.php/JAM/article/view/1916/2188

Purchasing Power

Product, Supply and Demand


PH GOV’T TO ALLEVIATE INFLATION WITH CONTINUED TARGETED SUBSIDIES, MEASURES TO BOOST
FOOD PRODUCTION — NEDA. (2022, December 6). https://neda.gov.ph/. https://neda.gov.ph/ph-govt-
to-alleviate-inflation-with-continued-targeted-subsidies-measures-to-boost-food-production-neda/
#:~:text=The%20Philippine%20Statistics%20Authority%20reported,percent%20in%20the%20previous
%20month.

Bangko Sentral ng Pilipinas Price Stability. (2022, November).


https://www.bsp.gov.ph/. https://www.bsp.gov.ph/SitePages/PriceStability/VisualMPR/
MonetaryPolicyReport_November2022.aspx

Summary Inflation Report Consumer Price Index (2018=100): November 2022 | Philippine Statistics
Authority. (2022, December 6).
https://psa.gov.ph/. https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-
price-index-2018100-november-2022

Related Studies
Ali and Ibrahim (2018) Inflation and Companies’ Performance: A Cross-Sectional Analysis,

the study aimed to analyze if there is a significant effect of inflation on the manufacturing

companies performance in Malaysia. Manufacturing is an important type of business in Malaysia

thus it has a significant impact on Malaysia's economy and for that reason that research studied

50 manufacturing companies and cluster random sampling were used to gather data along with

correlation analysis. Therefore, by analyzing the performance of the manufacturing companies

from the impact of inflation in Malaysia, the issue raised is whether the existence of inflation

affects a manufacturing company's gross profit. The research findings show that inflation has

significant impact on the financial performance of the business and inflation rate affects the

business gross profit. Literature review conducted in this study found that more studies are
needed to explain or further discusses on the impact of inflation on business performance to

incease awareness and sustain the business performance.

Maimunah Ali and Patmawati Ibrahim (2018) Inflation and Companies’ Performance: A Cross-

Sectional Analysis. Available from:

https://www.researchgate.net/publication/325502763_Inflation_and_Companies'_Performance_A_C

ross-Sectional_Analysis [accessed Dec 20 2022].

According to Sulistiyono et al. (2020) from the Study The Effect of Inflation on the number of

Medium Small Micro Entrerprises (MSME’s) 2016-2019 in Sukuharjo Regency, the sample of

the study were the MSMEs registerd in the Sukoharjo Regency 2016-2019, inflationary state has

the potential to disrupt the economy, particularly for producers who own MSMEs. The research

observed how the inflation affects the number of MSME’s overtime, the results show that the

inflation has an effect on the number of MSME. Inflation has an impact on both macroeconomic

and microeconomic activities.  Inflation also reduces people's purchasing power, which leads to a

drop in sales, the result on drop in sales reduces the company's return, and the decrease in return

will have an impact on the company's ability to pay its business finances. Inflation frequently

reduces MSMEs' turnover, forcing MSME owners to seek additional income by developing

innovations in various MSME products. Findings suggest that the number of Micro, Small, and

Medium Enterprises in Sukoharjo Regency is affected by inflation. This means that as the

inflation rate rises, the number of Micro, Small, and Medium Enterprises decreases.
Sulistiyono, S., Nuriyaningsih , I. ., Fiorentina , F. N. ., & Putri, G. (2020). The EFFECT OF

INFLATION ON THE NUMBER OF MEDIUM SMALL MICRO ENTERPRISES (MSMEs)

2016 - 2019 IN SUKOHARJO REGENCY. Journal of Business Studies and Management

Review, 4(1), 38-41. https://doi.org/10.22437/jbsmr.v4i1.10556

You might also like