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Capacity and Operating Variances: An Ex Post Approach.

Authors :
Ronen, Joshua
Source :
Journal of Accounting Research (Wiley-Blackwell); Autumn70, Vol. 8 Issue 2, p232-252, 21p, 6 Graphs
Publication Year :
1970

Abstract

This article focuses on the development of operating and capacity variances with the intension to improve decision making in regard to capacity design. The authors distinguish between the decentalization of capacity decisions and operating decisions in order to offer an alternative conceptual framework for generating variances. This distinction makes it possible to treat capacity as a decision variable, making it apart of control through variances. This also shows the possible sources of suboptimal output due to the interaction between the operating and capacity decisions.

Details

Language :
English
ISSN :
00218456
Volume :
8
Issue :
2
Database :
Complementary Index
Journal :
Journal of Accounting Research (Wiley-Blackwell)
Publication Type :
Academic Journal
Accession number :
6405686
Full Text :
https://doi.org/10.2307/2490109