Author : Philipp Plank
Publisher : Springer
ISBN 13 : 3658193212
Total Pages : 152 pages
Book Rating : 4.6/5 (581 download)
Book Synopsis Price and Product-Mix Decisions Under Different Cost Systems by : Philipp Plank
Download or read book Price and Product-Mix Decisions Under Different Cost Systems written by Philipp Plank and published by Springer. This book was released on 2017-08-29 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.