Question

Provide pricing methods (at least 3) and costing methods(at least 3) that can be used by service industries in the event management activities such as annual dinner of the company or training seminar.

Answer 1

A	Pricing Method is very much important in the bussiness strategy decision making. If we have a good pricing strategy, it would be helpful for the bussiness to reach it to a very great level.
	Pricing Method that can be used by service industries in the event management activities such as annual dinner of the company or training seminar are as under:-
1	A fixed hourly rate:-
*	In the event management activities, Most of the client wishes to pay as a fixed hourly rate for their training seminar or annual dinner etc.
2	A fixed hourly rate + Expenses :-
*	In the event management activities, Sometimes priced is charged as a fixed hourly rate with add-ons to cover expenses.
3	A Flat rate:-
*	When any client come to us, we firstly understand the reqirement of the client then we quote the price.
*	Many clients like this concept because they know what they finally have to pay.
B	Costing Method that can be used by service industries in the event management activities such as annual dinner of the company or training seminar are as under:-
1	Operating Costing:-
*	Operating Costing is the most commonly used method of costing by the service industries like event management companies
2	Historical Costing:-
*	Under historical costing method, All cost are determined in terms of actual cost and not the predetermined standard cost.
*	Cost are determined only after it is incurred.
3	Job Costing:-
*	Job Costing is used by custom goods producer, however this costing method is also often used by service industry like event management industry.
*	As Event manager will first estimate all the cost which is going to incurred for a particular event or job, accordingly he will quote the price.