What question did this study set out to answer?

The aim is to develop a better method for approximating service department costs involving reciprocal services.

A Reciprocal Service Cost Approximation.

View Full Paper

Ask AI

Bookmark

Authors

Proposes a new method for cost approximation in firms, suggesting improved decision-making implications.

The aim is to develop a better method for approximating service department costs involving reciprocal services.
Proposed a new cost approximation method for service departments.
Demonstrated analytical results that show convergence to correct allocations.
Conducted numerical comparisons with direct and step allocation methods.
The proposed method offers more accurate cost approximations than traditional methods.
Results indicate effectiveness even with parameter estimation errors.
Findings suggest real-world applications for better marginal cost assessments.

Jacobs et al. (1987) studied this question.

View Full Paper

Ask AI

Bookmark