The Accounting Review Vol. 46 No. 4 1971
Decision Making When Joint Products Are Involved.
Abstract
As has been demonstrated, the process of deciding whether or not to produce beyond the split-off point is not as simple as set forth in most managerial accounting books. Linear programming can be used in these situations as long as the production relationships remain relatively constant. However, in applying linear programming it is necessary to allow for inventories of unused intermediate outputs or optimality may not be truly found. It is not possible to construct a general model, but a wide variety of assumptions have been discussed in this paper with the goal of establishing a methodology of formulating decision models when joint products are involved.
- DOI
- 10.2308/tar-4503963
- Volume
- 46
- Issue
- 4
- Pages
- 746-755
- Language
- en
- Sources
- openalex crossref