Access the full text.
Sign up today, get DeepDyve free for 14 days.
Ijiri Ijiri, Itami Itami (1973)
Quadratic cost‐volume relationships and timing of demand informationThe Accounting Review, 48
Jaedicke Jaedicke, Robichek Robichek (1964)
Cost‐volume‐profit analysis under conditions of uncertaintyThe Accounting Review, 39
A. Sandmo (1971)
On the theory of the competitive firm under price uncertaintyThe American Economic Review, 61
Morrison Morrison, Kaczka Kaczka (1969)
A new application of calculus and risk analysis to cost‐volume‐profit changesThe Accounting Review, 44
Adar Adar, Barnea Barnea, Lev Lev (1977)
A comprehensive cost‐volume‐profit analysis under uncertaintyThe Accounting Review, 52
R. Magee (1975)
Cost-Volume-Profit Analysis, Uncertainty And Capital-Market EquilibriumJournal of Accounting Research, 13
J. Mossin (1966)
EQUILIBRIUM IN A CAPITAL ASSET MARKETEconometrica, 34
A. Charnes, W. Cooper, Y. Ijiri (1963)
Breakeven Budgeting and Programming to GoalsJournal of Accounting Research, 1
Ferrara Ferrara, Hayya Hayya, Nachman Nachman (1972)
Normalcy of profit in the Jaedicke‐Robichek modelThe Accounting Review, 47
Kottas Kottas, Lau Lau (1978)
On the accuracy of normalcy approximation in stochastic C‐V‐P analysis: A commentThe Accounting Review, 53
Lintner Lintner (1965)
The valuation of risk assets and the selection of risky investment in stock portfolios and capital budgetsReview of Economics and Statistics, 47
John Kottas, Hon-Shiang Lau (1979)
A decision model with stochastic cost and demand curvesOmega-international Journal of Management Science, 7
Hilliard Hilliard, Leitch Leitch (1975)
Cost‐volume‐profit analysis under uncertainty: A log normal approachThe Accounting Review, 50
H. Leland. (1972)
Theory of the Firm Facing Uncertain DemandThe American Economic Review, 62
B. Ismail, J. Louderback (1979)
OPTIMIZING AND SATISFICING IN STOCHASTIC COST‐VOLUME‐PROFIT ANALYSISDecision Sciences, 10
Sharpe Sharpe (1964)
Capital asset prices: A theory of market equilibrium under conditions of riskJournal of Finance, 19
D. Baron (1971)
Demand Uncertainty in Imperfect CompetitionInternational Economic Review, 12
H. Simon (1955)
A Behavioral Model of Rational ChoiceQuarterly Journal of Economics, 69
In this paper we incorporate a linear demand function to model the price‐volume causal relationship into stochastic cost‐volume‐profit (CVP) analysis. We assume that the objective function is to maximize expected profit; other objective functions are also discussed and compared. A linear stochastic model follows from which probabilistic statements can be easily obtained if the random variables are assumed to be multivariate normal. The basic framework is shown to be a special case of project value maximization where project value is the cash flow of the project discounted for time and risk according to the capital asset pricing model. Moreover, an intertemporal extension that considers inventory is developed. In summary, a new approach to stochastic CVP analysis that incorporates the management decision process in an uncertain environment is developed.
Decision Sciences – Wiley
Published: Jul 1, 1981
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.