The Lcamr Missile

William P. Rogerson
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William P. Rogerson: Northwestern University

Chapter Chapter 12 in Essays in Accounting Theory in Honour of Joel S. Demski, 2007, pp 251-281 from Springer

Abstract: Abstract This paper presents a fictional case study of an aerospace firm’s analysis of whether to undertake a new missile program for sale in foreign markets. The adoption of this new program will affect fully allocated accounting costs on all of its programs. The issue explored is whether and how the firm ought to take into account the fact that the prices it receives on many of the products it sells to the U.S. government are based on fully allocated accounting costs and how this potentially affects the firm’s incentives to produce as efficiently as possible

Keywords: Cost allocation; cost-based pricing; defense procurement; overhead (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-0-387-30399-4_12

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DOI: 10.1007/978-0-387-30399-4_12

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