search query: @author Balachandran, B. / total: 3
reference: 1 / 3
« previous | next »
| Author: | Balachandran, B. Balakrishnan, R. Sivaramakrishnan, K. |
| Title: | On the efficiency of cost-based decision rules for capacity planning |
| Journal: | Accounting Review
1997 : OCT, VOL. 72:4, p. 599-620 |
| Index terms: | ACCOUNTING PLANNING ECONOMICS |
| Language: | eng |
| Abstract: | The quality of capacity planning significantly affects firm profitability, particularly for firms in service industries. In practice, firms use product cost data to infer the expected cost of under-and over-stocking capacity and to determine installed capacity. Theory shows that this is not optimal practice. In light of the informational and computational complexities associated with the optimal theoretical formulation, the use of product cost may be justified as a heuristic. |
« previous | next »
SCIMA