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. Chapter 3, Determining Relevant Revenues: Understanding the Buyer (22 pages), highlights the key concepts in demand theory. The authors posit that understanding the law of demand and the influence of consumer behavior factors on demand will help managers understand relevant revenue. Using the example of concessions at a baseball game, the authors illustrate the concepts of demand, marginal utility, and marginal revenue. They outline the factors that impact demand, including product pricing and competition, as well as consumer income, tastes, and price expectations. They also explore the concepts of price elasticity and cross-price elasticity, providing several real-world applications of why both are critical components of decision-making.

• Financial analysis
• Cost accounting