個案資料

Economic Decision Making Using Cost Data: A Manager's Guide is a 6-chapter book published in 2013 by the Business Expert Press and written by Daniel Marburger of Arkansas State University and Ryan Peterson, a practicing accountant. In this book, the authors outline basic economic theory as a guide for managers in making business decisions involving unit cost estimates. In this context, they examine key economic concepts such as opportunity cost, demand theory, and cost theory as well as different approaches to cost accounting. The authors posit that cost accounting represents the results of previous outcomes and, as such, does not provide the information that managers need to make sound decisions moving forward. The authors examine the potential pitfalls that a manager may face when making decisions based on cost estimates and suggest how best to use economic theory to maximize a company's profits. In Chapter 2, What Matters and What Doesn't: Relevant Revenues and Costs (12 pages), the authors explore the decision-making value of basic data provided by standard accounting reports. They explain why a manager should evaluate the outcome of each decision alternative based only on the relevant revenue and cost, or those which a particular decision will impact. Using the example of a fundraiser, they explore the elements involved in relevant revenue and cost, including avoidable and unavoidable fixed costs, variable cost, sunk costs, and breakeven analysis. The authors demonstrate why managers should not look at historical costs, but instead consider only expected future costs when making decisions.

• Cost accounting
• Financial analysis