ABC for quantitative policy decisions. (accounting methods)

Management Accounting (UK), May, 1998 by Lucas, Mike

Managerial accounting textbooks frequently fail to discuss the use of attributable costs in quantitative decision-making. They tend to focus on the use of absorption cost analysis or marginal cost analysis but these approaches carry dangers and are not appropriate for quantitative policy decision-making. Full cost may be more useful than relevant cost in this area of decision-making, which suggests that textbooks should discuss the fixed costs which can be assigned to products.

In a previous article(*) the author argued that cost allocations/absorption can have a role to play in ...