Titlebook: Managerial Uses of Accounting Information; Joel S. Demski Book 19971st edition Kluwer Academic Publishers 1997 accounting.communication.co

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Extraction from the Accounting Library, library that are useful for decision making. More specifically, we concentrate on estimating an LLA for a particular cost category. As our study expands in later chapters to include control problems, we will see this theme also embraces cost estimates that are useful in the design and operation of a control system.

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Competitive Response, a product to our product line may affect one or more competitors and may evoke a response. For example, they may decide to cede the new product’s market to us or they may retaliate with vigor. Extensive investment in R&D may scare off potential competitors. Access to proprietary technology may give us a cost advantage.

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Evaluation Based on Controllable Performance,idea is to ask the model what types of data it finds useful in the evaluation exercise. Studying the model’s answer will provide important clues for understanding the selective use of accounting and nonaccounting information in the managerial evaluation process.

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Framing Decisions,The purpose of this chapter is to introduce the subject of decision making and its relationship to various cost constructions. We have referred to this topic at various points, but have deferred a systematic treatment until our study of the accounting library was complete.