Cost accounting

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Asawari Malhotra (Querist)
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17 September 2013 if the price of a raw material has risen due to temporary shortage in supply .. all the other competitors too are buying it for the inflated price so will it be added in the selling price? also, if there was a permanent shortage in supply expected?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 September 2013 It depends upon the pricing decision of the seller. if you want to keep the sales in same level then you can bare the rise in material price and don't change the selling price. incase you can to keep the margin of the product at same level. then you can increase the selling price to that extent

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