There are many managerial decisions that use principles of economics as the standard framework. These economic rules of decision making require estimates cost and revenues. In other words economic analysis requires cost estimates. Cost estimates relevant for management decisions can be produced from orthodox accounting records. Statistical and engineering analysis are used to convert financial accounting figures into cost concepts useful for use in managerial decision problems. The decision model also guides the estimation procedure.
Determinants of Cost Behavior
Prices of input factors
Technology
Lot size
Efficiency
Other factors
Cost Concepts
Opportunity costs - Outlay costs
Past costs - Future costs
Short run costs - Long run costs
Variable costs - Constant costs
Traceable costs - Common costs
Out of pocket costs - Book costs
Incremental costs - Sunk costs
Escapable costs - Unavoidable costs
Controllable costs - Non-controllable costs
Replacement costs - Historical costs
Relation Between Cost and Other Variables
Cost and The Rate of Output
Short-run cost output functions
Determination of cost-output functions
Cost and Size of Plant
Cost of Multiple Products
Breakeven Analysis
(Cost - Volume - Profit analysis)
Article originally posted at
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The statistical analysis of survey data helps you in completing orthodox accounting records. This works like a pioneer to manage accounts.
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