search query: @author Cohen, S. I. / total: 5
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| Author: | Cohen, S. I. Loeb, M. |
| Title: | Implicit cost allocation and bidding for contracts. |
| Journal: | Management Science
1990 : SEP, VOL. 36:9, p. 1133-1138 |
| Index terms: | COST ALLOCATION CONTRACTS BIDDING |
| Language: | eng |
| Abstract: | A step toward answering the question of how, or even whether, indirect costs should be allocated for pricing decisions is taken, by examining the special case of a firm. It must incur incremental fixed costs to complete any or all the several projects for it is submitting simultaneous bids. An independent bidding model is applied to determine an optimal cost allocation. Such an allocation is termed "implicit". The optimal implicit fixed cost allocation is shown to allocate fixed costs anterior, although the fixed costs may be under, over or exactly allocated posterior. |
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