The Accounting Review Vol. 57 No. 4 1982
A Dynamic Approach to the Evaluation of Input-Variable Cost Center Performance.
Abstract
Given the recent history of double-digit inflation, there is an increased need for manufacturing firms to respond to possible changes in the relative prices of their inputs. The paper presents a method for such firms to adapt more quickly to changes in relative prices by assigning the responsibility solely to cost center managers. The basic approach is to measure their performance with respect to both the adaptation to relative input prices and the technical efficiency of the operation. An illustration of this new approach to production processes adequately described by a linear programming formulation is also presented.
- DOI
- 10.2308/tar-4497556
- Volume
- 57
- Issue
- 4
- Pages
- 681-700
- Language
- en
- Sources
- openalex crossref