Ceiling Prices

Ceiling Prices

 

(Russian, limitnye tseny), in the USSR, the upper limit on the price level for a particular type of product.

Ceiling prices are set when the production of new types of articles (materials) and nonstandard equipment is being planned. They are also used for calculations of the estimated cost of capital construction in relation to the articles and materials being used when these articles lack confirmed wholesale prices at the moment that drafts and estimates for construction are being made. Ceiling prices are determined by the organization that issues the assignment for designing these new products. When series production is being considered, the ceiling price must be confirmed by the manufacturing enterprise.

Different systems of calculating ceiling prices are used depending on the type of product or its purpose. Ceiling prices for new articles (materials) that will replace previously incorporated output are calculated by a special methodology for determining wholesale prices for new products. Ceiling prices for new single-type articles (materials) not intended to replace previously incorporated products are established using the technical and economic parameters included in working out the cost estimates of capital construction projects; these prices are estimated using a reduced cost factor (for most sectors it is 0.8). Ceiling prices for fundamentally new articles (materials) being made for the first time in the USSR are determined on the basis of consolidated norms of material and labor expenditures. For non-standard equipment (articles), group ceiling prices are computed in reference to the technical-economic index (such as unit of power, productivity, or usable capacity) that is appropriate to the particular equipment group and determined chiefly by its operating characteristics.

The use of ceiling prices in the stage of planning new types of articles (materials) makes it possible to establish their economic efficiency in advance and thus avoid the development of products that are not beneficial to the national economy.

REFERENCES

Koshuta, A. A. Tseny na produktsiiu mashinostroeniia. Moscow, 1969.
Komin, A. N. Problemy planovogo tsenoobrazovaniia. Moscow, 1971.

A. P. ANTONOV

References in periodicals archive ?
Shri Mandaviya stated that the Government has fixed the ceiling prices of 851 formulations/ (packs) included in Revised Schedule - I of the Drugs (Prices Control) Order, 2013 (DPCO, 2013).
The NPPA has notified pharma producers to adapt the ceiling prices of 662 medicines that are listed within the amended Schedule-I of DPCO 2013 (National List of Essential Medicines NLEM -15.
NPPA has fixed/ revised ceiling prices of 22 scheduled formulations of Schedule- I under Drugs ( Price Control) Amendment Order, 2016 and retail price of 13 formulations under DPCO, 2013, the National Pharmaceutical Pricing Authority ( NPPA) said in a statement.
There is no easy answer to the problem -- it is not the imposition of ceiling prices which the Christofias government unsuccessfully toyed with -- which is why the debate about petrol prices is unlikely to ever end.
Sector representative said some last minute ticket prices may increase by up to 400 or 450 Turkish Liras, and they expected the ceiling prices to be around 300 liras.
Over the next few weeks, drug pricing regulator National Pharmaceutical Pricing Authority is expected to announce in tranches the ceiling prices of 652 formulations, which will serve as the benchmark for companies.
The decision to set ceiling prices complies with the law of Kyrgyzstan "On natural and permitted monopolies of Kyrgyzstan".
Industry executives estimated the 2010 household appliance bid to bring Taiwanese suppliers heftier profit than that they enjoyed from 2009 bids thanks to higher ceiling prices this year.
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Through the program, qualifying hospitals and all of HRSA's smaller grantees can shave between two percent and 35 percent from the 340B ceiling prices on selected products.
Any changes in the methodology of calculating ceiling prices of scheduled medicines are presently not under consideration.