Product Profitability at Merrydale Limited
Andrew M. McCosh and
Michael J. Earl
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Andrew M. McCosh: Manchester Business School
Michael J. Earl: Oxford Centre for Management Studies
A chapter in Accounting Control and Financial Strategy, 1979, pp 70-74 from Palgrave Macmillan
Abstract:
Abstract This case explores the use of accounting information in decision-making. As the title implies, the case addresses the product-range decision: how to decide which products to drop from a product-line when the company (Merrydale) is making losses. Primarily it is an exercise in relevant costs and the contribution approach to decision-making. However other issues are also raised, for example the need for costing systems and questions of strategy.
Keywords: Marginal Cost; Product Profitability; Full Cost; Unit Contribution; Unit Profit (search for similar items in EconPapers)
Date: 1979
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-04018-6_13
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DOI: 10.1007/978-1-349-04018-6_13
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