ABSTRACT Cost‐Volume‐Profit analysis is a tool of cost accountants aiding in the choice of an optimal course of action in the solution of a managerial problem. C‐V‐P is a limited analysis since all the needs of management in determining the optimal strategy are not fulfilled. Factors pertinent to the choice of the optimal strategy under uncertainty are variables, although traditional C‐V‐P treats these factors as constants. Hence, an approach to C‐V‐P where pertinent factors necessary for decision making are considered as variables is more desirable than traditional C‐V‐P. By introducing uncertainty, it is also beneficial to broaden C‐V‐P to fulfill the following desire of management. Should management choose a course of action based only on its own estimates of the decision parameters or is it advisable to postpone a terminal decision until additional research into the decision parameters is accomplished? Broadened C‐V‐P solves this problem with the aid of Bayesian Decision Theory for the choice of the optimal course of action in the face of uncertainty.
Decision Sciences – Wiley
Published: Jul 1, 1973
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera