Accounting and Control

Relevant Costs for Decision Making (II): Product Decisions at Under Capacity

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This is the second of a three-note series (CN-155-E, CN-143-E and CN-144-E). This note deals with the use of cost accounting data for decision making purposes. After classifying business decisions between investment and operating decisions, and the latter between pricing and production decisions, the note studies production decisions in situations where the firm is working below production capacity. The special order problem, dropping and adding products, processing, furthering or selling a given product are the specific decisions considered.
Bibliographic citation: Rosanas, Josep Maria, "Relevant Costs for Decision Making (II): Product Decisions at Under Capacity", IESE, CN-143-E, 08/2017
Date: 28/08/2017
Author(s): Rosanas, Josep Maria
Document type: Technical Note
Department: Accounting and Control
Languages: Spanish / English