Abstract
For managers to be able to choose between alternative business opportunities, they need information regarding future costs and revenues and the way in which these may vary at different levels of activity. In order to use this information effectively, in the business environment, they also need to understand how costs are determined and the way in which costs and revenues behave.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arnold, J. and Hope, T. (1990) Accounting for Management Decisions,2nd edn, Prentice-Hall.
Hongren, C. and Foster, G. (1987) Cost Accounting — A Managerial Emphasis,6th edn, Prentice-Hall.
Slater, R. and Ascroft, P. (1990) Quantitative Techniques in a Business Context,Chapman and Hall.
Further reading
For a more detailed analysis of methods of cost estimation reference can be made to Horngren and Foster (1987).
Another book in this series Economics in a Business Context (1989) examines curvilinear cost functions from an economics perspective in Chapter 4.
The CVP model that we have examined ignores risk and uncertainty, which will inevitably be relevant in practice. This aspect is considered in Managerial Accounting: Method and Meaning by R. M. S. Wilson and W. F. Chua (VNR, 1988 ), Chapter 4.
Rights and permissions
Copyright information
© 1991 A.J. Berry and R. Jarvis
About this chapter
Cite this chapter
Berry, A., Jarvis, R. (1991). Cost behaviour and costvolume-profit analysis. In: Accounting in a Business Context. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-6944-6_13
Download citation
DOI: https://doi.org/10.1007/978-1-4899-6944-6_13
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-412-37510-1
Online ISBN: 978-1-4899-6944-6
eBook Packages: Springer Book Archive