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Volume 01 Issue 2

Simulating the Influence of Price Auditing on the Corporate Profit in Business-to-Government Relationships: Experiences from a Case Study in the German Automotive Industry

Published: 03 Mar 2014 Issue:Volume 01 Issue 2 Jul 2013 Author details below

Radl

Institute of Production Science and Management, Graz University of Technology, Graz

Jurgen Markus

Institute of Production Science and Management, Graz University of Technology

Kerschenbauer

Institute of Business Economics and Industrial Sociology, Graz University of Technology, Graz

Jochen Edmund

Institute of Business Economics and Industrial Sociology, Graz University of Technology, Graz

Kriegl

Institute of Production Science and Management, Graz University of Technology, Graz

Verena

Institute of Production Science and Management, Graz University of Technology, Graz

Grbenic

Department of Corporate Finance & Accounting, University of Applied Sciences, Eisenstadt

Stefan

Department of Corporate Finance & Accounting, University of Applied Sciences, Eisenstadt

Zunk

Institute of Business Economics and Industrial Sociology, Graz University of Technology, Graz

Bernd Markus

Institute of Business Economics and Industrial Sociology, Graz University of Technology, Graz

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Research summary

In business-to-government (B2G) relationships, companies managers need to consider the national price law when they price products. In Germany, legal regulations on pricing were set to limit the corporate profit. Their compliance is ensured by price audits. Due to the absence of national price regulations in several NATO states, many procuring authorities apply the German regulations to their contracts and request German administrative assistance for auditing prices. In this paper we outline how the German legal framework allows for the application of different strategies and scenarios of how to price automotive industry products. The scenario technique is used to simulate a price audit on a real-life governmental customer project. We report on our experience about whether there is a possibility to simulate price audits on pricing scenarios. The result of the price audit simulation clearly shows the influence of the chosen strategy on the contribution margin as well as on the corporate profit for each price auditing scenario that was tested

Article History

Published 03 Mar 2014

How to Cite

Radl, Markus, J., Kerschenbauer, Edmund, J., Kriegl, Verena, Grbenic, Stefan, Zunk, & Markus, B.. (2014). Simulating the Influence of Price Auditing on the Corporate Profit in Business-to-Government Relationships: Experiences from a Case Study in the German Automotive Industry. International Journal of Business and Economic Development, Volume 01 Issue 2.

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Archive cited by No internal citing article yet
Reference depth 38 sources listed
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APA

Radl, Markus, J., Kerschenbauer, Edmund, J., Kriegl, Verena, Grbenic, Stefan, Zunk, & Markus, B.. (2014). Simulating the Influence of Price Auditing on the Corporate Profit in Business-to-Government Relationships: Experiences from a Case Study in the German Automotive Industry. International Journal of Business and Economic Development, Volume 01 Issue 2.

MLA

Radl, et al.. "Simulating the Influence of Price Auditing on the Corporate Profit in Business-to-Government Relationships: Experiences from a Case Study in the German Automotive Industry." International Journal of Business and Economic Development, Volume 01 Issue 2, 2014.

Chicago

Radl, Jurgen Markus, Kerschenbauer, Jochen Edmund, Kriegl, Verena, Grbenic, Stefan, Zunk, and Bernd Markus. "Simulating the Influence of Price Auditing on the Corporate Profit in Business-to-Government Relationships: Experiences from a Case Study in the German Automotive Industry." International Journal of Business and Economic Development Volume 01 Issue 2 (03 Mar 2014).

Harvard

Radl, Markus, J., Kerschenbauer, Edmund, J., Kriegl, Verena, Grbenic, Stefan, Zunk, & Markus, B. (2014) Simulating the Influence of Price Auditing on the Corporate Profit in Business-to-Government Relationships: Experiences from a Case Study in the German Automotive Industry. International Journal of Business and Economic Development, Volume 01 Issue 2

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