What process is used to determine a reasonable price for supplies or services?

The process of determining a reasonable price for supplies or services is best described as pricing. This involves evaluating various factors that contribute to setting a price that reflects the value, market conditions, competition, and the costs incurred in providing the goods or services.

Pricing encompasses not just the cost of the item or service itself, but also considers profit margins, demand elasticity, and potential customer behavior. It is a strategic process aimed at ensuring that the price is competitive while also allowing the business to be sustainable and profitable.

While other terms such as cost analysis or estimating relate to aspects of the overall pricing process, they are not directly synonymous with the comprehensive approach of pricing. Cost analysis focuses specifically on the breakdown and examination of costs associated with a product or service, while estimating generally refers to approximating the expenses or resources needed for a project rather than setting final prices. Valuation, on the other hand, typically pertains to assessing the worth of an asset or investment, rather than determining a price for supplies or services in a contractual context.