Springer - Price And Product-Mix Decisions Under Different Cost Systems (2018 EN)

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    Author: Philipp Plank
    Full Title: Price And Product-Mix Decisions Under Different Cost Systems
    Publisher: Springer Gabler; 1st ed. 2018 edition (August 29, 2017)
    Year: 2018
    ISBN-13: 9783658193218 (978-3-658-19321-8), 9783658193201 (978-3-658-19320-1)
    ISBN-10: 3658193212, 3658193204
    Pages: 132
    Language: English
    Genre: Accounting/Auditing
    File type: PDF (True)
    Quality: 10/10
    Price: 52.39 €
    Website: http://www.springer.com/gp/book/9783658193201



    Philipp Plank analyses the question, what drives the quality of cost-systems and is the quality of cost-systems directly and at best positively related to the firms’ performance. In other words, is it worth investing in complex cost allocation systems or are there environmental and/or production settings in which less enhanced systems perform adequately. Using simulations, a benchmark firm (first-best solution) perfectly allocating cost to products is compared to firms implementing heuristic cost-allocation schemes (second-best solution) to identify the profit gap resulting from decisions based on limited information. Into this discussion, the idea of cost-stickiness is integrated, thereby indicating a new planning approach.

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