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 4, What Your Cost Accountant Can't Measure: The Economic Theory of Production and Cost (28 pages), the authors explore what managers need to understand about relevant cost and cost accounting methods. They explain the pitfalls inherent in how most firms calculate cost information and how this can mislead managers. They illustrate the concepts of production theory and the law of diminishing returns, using the example of a doughnut shop to explain cost theory, including fixed and variable costs, total costs, and marginal costs. The authors discuss how a manager can determine the output and pricing necessary to maximize a company's profit.

• Production
• Financial analysis
• Cost accounting