search query: @author Abdolmohammadi, M. J. / total: 4
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| Author: | Kim, S. Abdolmohammadi, M. J. Klein, L. A. |
| Title: | CVP under uncertainty and the manager's utility function |
| Journal: | Review of Quantitative Finance and Accounting
1996 : MAR, VOL. 6:2, p. 133-147 |
| Index terms: | COST-PRICE-VOLUME ANALYSIS FIXED COSTS RISK UNCERTAINTY |
| Language: | eng |
| Abstract: | Cost-volume-profit (CVP) analysis has focused on the firm's short-run output decision with the assumption the manager maximizes the firm's objective function rather than his or her own. The study argues that the decision problem that the manager faces is to determine not only the level of output, but also the level of investment in risky assets in such a way that the expected utility of manager's own end-of-period wealth can be maximized when the manager's wealth function is dependent on vested interests both within and outside of the firm, possibly in competition with the firm. |
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