Abstract
This case explores the use of accounting information in decision-making. As the title implies, the case addresses the product-range decision: how to decide which products to drop from a product-line when the company (Merrydale) is making losses. Primarily it is an exercise in relevant costs and the contribution approach to decision-making. However other issues are also raised, for example the need for costing systems and questions of strategy.
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Further Reading
For product-market strategy see: Ansoff, I., Corporate Strategy (Penguin Books, 1968).
For linear programming see: Haley, K.B., Mathematical Programming for Business and Industry (Macmillan, 1967).
For management information design for operational, management and strategic decisions see: McCosh, A.M., Rahman, M. and Earl, M.J., Managing Information (Macmillan, forthcoming)
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© 1979 Andrew M. McCosh and Michael J. Earl
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McCosh, A.M., Earl, M.J. (1979). Product Profitability at Merrydale Limited. In: Accounting Control and Financial Strategy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-04018-6_13
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DOI: https://doi.org/10.1007/978-1-349-04018-6_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-04020-9
Online ISBN: 978-1-349-04018-6
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