What question did this study set out to answer?

The aim is to create a decision model that enhances traditional cost-volume-profit analysis by incorporating random demand and production levels.

A General Decision Model for Cost-Volume-Profit Analysis under Uncertainty.

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Developing a decision model improves cost-volume-profit analysis by addressing uncertainty in demand and production.

The aim is to create a decision model that enhances traditional cost-volume-profit analysis by incorporating random demand and production levels.
Constructing a general decision model for C-V-P analysis
Analyzing various measures of uncertainty in profit behavior
Providing numerical examples to illustrate model applications
Offering two FORTRAN programs for computational aid
The model improves the realism of C-V-P analysis by addressing uncertainty factors.
Managers can optimally choose among alternative products and production levels based on firm goals.
Applications of the model show varying profit behaviors under different scenarios.

Wei Shih (1979) studied this question.

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