Research on the Price Decision Mechanism and Model of Service Projects Based on ABC

Prices of services are the increasingly important decision factor to all firms seeking maximum service profits, but it is a very difficult to estimate the prices of service projects, so service price becomes the controversy focus of firms. Activity based costing (ABC) is the optimized method of costing services cost, and the accurate cost information provided by it is playing a very important role in service project price decision. The paper firstly analyses the price decision mechanism based on ABC for service projects, and according to the basic mechanism and the operation process of service projects, the concrete price estimating process and model of service projects based on ABC are deduced. Moreover the price decision strategies of service project based on the different competition conditions are analyzed and put forward for services price decision-makers, and the applicable conditions of the price decision model are elaborated.