A note on the importance of product costs in decision-making

John A. Brierley, Christopher Cowton, Colin Drury

Research output: Chapter in Book/Report/Conference proceedingChapter

7 Citations (Scopus)

Abstract

This paper uses the results of a questionnaire survey to conduct exploratory research into the importance of product costs in decision-making. The results of the research reveal that product costs are at least important in selling price, make-or-buy, cost reduction, product design, evaluating new production process and product discontinuation decisions. Product costs that were used directly in decision-making were more important than those that were used as attention directing information and they were more important in product mix, output level and product discontinuation decisions in continuous production processes manufacturing. In general, the importance of product costs in decision-making did not vary between the methods used to allocate and assign overheads to product costs, and it was not related to operating unit size, product differentiation, competition and the level of satisfaction with the product costing system.
LanguageEnglish
Title of host publicationAdvances in Management Accounting
EditorsJohn Y. Lee, Marc J. Epstein
PublisherEmerald Group Publishing Limited
Pages257-273
Number of pages17
Volume15
ISBN (Electronic)9781849504478
ISBN (Print)9780762313525
DOIs
Publication statusPublished - 2006
Externally publishedYes

Publication series

NameAdvances in Management Accounting
PublisherJAI Press
ISSN (Print)1474-7871

Fingerprint

Product cost
Decision making
Production process
Questionnaire survey
Product differentiation
Product mix
Make-or-buy
Product costing
Product design
Process manufacturing

Cite this

Brierley, J. A., Cowton, C., & Drury, C. (2006). A note on the importance of product costs in decision-making. In J. Y. Lee, & M. J. Epstein (Eds.), Advances in Management Accounting (Vol. 15, pp. 257-273). (Advances in Management Accounting). Emerald Group Publishing Limited. https://doi.org/10.1016/S1474-7871%2806%2915011-X
Brierley, John A. ; Cowton, Christopher ; Drury, Colin. / A note on the importance of product costs in decision-making. Advances in Management Accounting . editor / John Y. Lee ; Marc J. Epstein. Vol. 15 Emerald Group Publishing Limited, 2006. pp. 257-273 (Advances in Management Accounting).
@inbook{4f1fb4b1451d4030ad0ea1d53958a303,
title = "A note on the importance of product costs in decision-making",
abstract = "This paper uses the results of a questionnaire survey to conduct exploratory research into the importance of product costs in decision-making. The results of the research reveal that product costs are at least important in selling price, make-or-buy, cost reduction, product design, evaluating new production process and product discontinuation decisions. Product costs that were used directly in decision-making were more important than those that were used as attention directing information and they were more important in product mix, output level and product discontinuation decisions in continuous production processes manufacturing. In general, the importance of product costs in decision-making did not vary between the methods used to allocate and assign overheads to product costs, and it was not related to operating unit size, product differentiation, competition and the level of satisfaction with the product costing system.",
author = "Brierley, {John A.} and Christopher Cowton and Colin Drury",
year = "2006",
doi = "10.1016/S1474-7871{\%}2806{\%}2915011-X",
language = "English",
isbn = "9780762313525",
volume = "15",
series = "Advances in Management Accounting",
publisher = "Emerald Group Publishing Limited",
pages = "257--273",
editor = "Lee, {John Y.} and Epstein, {Marc J.}",
booktitle = "Advances in Management Accounting",

}

Brierley, JA, Cowton, C & Drury, C 2006, A note on the importance of product costs in decision-making. in JY Lee & MJ Epstein (eds), Advances in Management Accounting . vol. 15, Advances in Management Accounting, Emerald Group Publishing Limited, pp. 257-273. https://doi.org/10.1016/S1474-7871%2806%2915011-X

A note on the importance of product costs in decision-making. / Brierley, John A. ; Cowton, Christopher; Drury, Colin.

Advances in Management Accounting . ed. / John Y. Lee; Marc J. Epstein. Vol. 15 Emerald Group Publishing Limited, 2006. p. 257-273 (Advances in Management Accounting).

Research output: Chapter in Book/Report/Conference proceedingChapter

TY - CHAP

T1 - A note on the importance of product costs in decision-making

AU - Brierley, John A.

AU - Cowton, Christopher

AU - Drury, Colin

PY - 2006

Y1 - 2006

N2 - This paper uses the results of a questionnaire survey to conduct exploratory research into the importance of product costs in decision-making. The results of the research reveal that product costs are at least important in selling price, make-or-buy, cost reduction, product design, evaluating new production process and product discontinuation decisions. Product costs that were used directly in decision-making were more important than those that were used as attention directing information and they were more important in product mix, output level and product discontinuation decisions in continuous production processes manufacturing. In general, the importance of product costs in decision-making did not vary between the methods used to allocate and assign overheads to product costs, and it was not related to operating unit size, product differentiation, competition and the level of satisfaction with the product costing system.

AB - This paper uses the results of a questionnaire survey to conduct exploratory research into the importance of product costs in decision-making. The results of the research reveal that product costs are at least important in selling price, make-or-buy, cost reduction, product design, evaluating new production process and product discontinuation decisions. Product costs that were used directly in decision-making were more important than those that were used as attention directing information and they were more important in product mix, output level and product discontinuation decisions in continuous production processes manufacturing. In general, the importance of product costs in decision-making did not vary between the methods used to allocate and assign overheads to product costs, and it was not related to operating unit size, product differentiation, competition and the level of satisfaction with the product costing system.

UR - https://books.emeraldinsight.com/page/detail/Advances-in-Management-Accounting/?k=9780762313525

U2 - 10.1016/S1474-7871%2806%2915011-X

DO - 10.1016/S1474-7871%2806%2915011-X

M3 - Chapter

SN - 9780762313525

VL - 15

T3 - Advances in Management Accounting

SP - 257

EP - 273

BT - Advances in Management Accounting

A2 - Lee, John Y.

A2 - Epstein, Marc J.

PB - Emerald Group Publishing Limited

ER -

Brierley JA, Cowton C, Drury C. A note on the importance of product costs in decision-making. In Lee JY, Epstein MJ, editors, Advances in Management Accounting . Vol. 15. Emerald Group Publishing Limited. 2006. p. 257-273. (Advances in Management Accounting). https://doi.org/10.1016/S1474-7871%2806%2915011-X