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 6, Are You a Better Decision Maker . . . Yet? (6 pages), the authors posit that a manager's success depends on how well he or she applies economic theory in decision-making. They demonstrate how the innovative use of economic theory can result in higher profits by explaining how the CEO at Parker Hannifin Corporation used the concept of price elasticity to revise the company's pricing strategy and grow revenues by $500 million in five years. The authors build a case for their approach by reviewing the economic concepts covered in each chapter. They also provide practical questions for managers to ask about cost information, market competition, and financial analysis, as well as how to follow-up on the initial information and when to engage a consultant.

• Financial analysis
• Cost accounting