Abstract
In Chapter 15 we examined the principles of relevant costs and the application of these principles in making accounting decisions. These decisions related to situations where there were no resource contraints and their acceptance or rejection did not affect the demand or production levels of any other products. In practice, however, a decision taken by an organization will often necessitate giving up other opportunities, either because of the lack of resources or because the decision is mutually exclusive (i.e. where the acceptance of one opportunity will mean that others will be rejected). In this chapter we shall be examining decisions where there are resource constraints and the make or buy decision. The make or buy decision is probably the most common type of mutually exclusive decision that confronts organizations.
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Needle, D. (1989) Business in Context,VNR.
Further reading
An excellent analysis of decision making when there is more than one constraint can be found in Chapters 9 and 10 of Accounting for Management Decisions by J. Arnold and T. Hope (Prentice-Hall International, 1983).
Rights and permissions
Copyright information
© 1991 A.J. Berry and R. Jarvis
About this chapter
Cite this chapter
Berry, A., Jarvis, R. (1991). Accounting for decision making: resource constraints and decisions which are mutually exclusive. In: Accounting in a Business Context. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-6944-6_16
Download citation
DOI: https://doi.org/10.1007/978-1-4899-6944-6_16
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-412-37510-1
Online ISBN: 978-1-4899-6944-6
eBook Packages: Springer Book Archive