Suchergebnisse

There is a divergence between costing methodology and spending behaviour in transportation. This article identifies differences between economic and accounting cost concepts, and differences between the conceptual interpretations of cost estimates based on those concepts. In particular, the cost‐volume‐profit (breakeven) model is re‐examined in terms of its experimental and ex post estimates, and the reliability of those estimates, to describe and to guide managerial behaviour. Some criticism of statistical costing is warranted by the inherent difficulty of modelling human behaviour patterns. Likewise, enlightened interpretation of statistical cost estimates allows management to enhance the planning and control processes for which the figures were prepared.

The literature of traditional inventory analysis contains primarily cost minimisation models. These models avoid the interface of marketing and finance with logistics through constraints and a combined logistics/marketing/finance objective of maximising firm's profit. Under certain conditions, the cost minimisation models will give the same results as the profit maximising results; however, if such conditions do not hold, the cost minimisation models may give results which are different from the profit maximising results. Such is the case when sales lot size for batch sales) decisions are analysed within a cost minimising framework. A proper framework based on discounted cash flow analysis as prescribed by finance theory is developed in this article. A numerical illustration is also presented.