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The Usefulness of Commonality Information in Cost Control Decisions.

Robert P. Magee

Health Information Management

The Accounting Review 1977

ABSTRACT: Most cost variance investigation models have considered only one cost process at a time. However, there are many reasons why cost variances from two cost processes may be correlated and why a model which exploits these commonalities may be expected to reduce expected costs. Such a model is described in this paper, and some examples are used to illustrate the effects of different factors on the cost savings.

DOI
10.2308/tar-4504820
Volume
52 (4)
Pages
869-880
Language
en
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