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Economic Decision Making Using Cost Data (Paperback)

Daniel M. Marburger, Ryan Peterson

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ISBN 10: 1606495127 / ISBN 13: 9781606495124
Verlag: Business Expert Press, United States, 2013
Neu Zustand: New Softcover
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Beschreibung

Language: English. Brand new Book. A firm maximizes profits if each decision adds more to the firm's revenue than to its costs. Although the concept sounds rather simple, it is difficult to do in practice. To ease this difficulty, the authors are giving you the inside knowledge to "economic theory." This book will help you understand economic theory and much more to accurately infer changes in revenues that may be associated with a decision. And since economic theory suggests that the costs reported by accountants rarely reflect the true cost associated with the decision, this book will help you understand how to assess the changes in revenues and costs. Demand and price sensitivity analysis allow you to infer revenue changes, and this book helps you reconcile the economic theory of cost with common accounting practices so the differences can be reconciled and better decisions can be made. Buchnummer des Verkäufers LIE9781606495124

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Bibliografische Details

Titel: Economic Decision Making Using Cost Data (...

Verlag: Business Expert Press, United States

Erscheinungsdatum: 2013

Einband: Paperback

Zustand: New

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Inhaltsangabe:

Book by Marburger Daniel M

Reseña del editor:

According to economic theory, production and costs follow patterns that are common to many firms. In a world of perfect information, managers could utilize this cost data to make production decisions and set prices. In the real world, however, much of this information remains unknown.

Common accounting practices are designed with record-keeping as the end goal rather than to present an accurate assessment of opportunity cost. Many times, managers do not recognize the difference between opportunity costs and accounting costs and, instead, rely upon the readily available accounting costs to make their decisions. This often leads to suboptimal decisions. The purpose of this book is to present production/cost theory, review various cost accounting methods and demonstrate how they may distort production and pricing decisions in light of the differences between accounting costs and economic theory.

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