Capacity Management: How to Avoid Suboptimal Decisions

✍ Scribed by Leslie Kren; Paul Kimmel

• Publisher: John Wiley and Sons
• Year: 2001
• Tongue: English
• Weight: 58 KB
• Volume: 12
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.1109

✦ Synopsis

Abstract

Managers often calculate fixed costs per unit based on the expected activity for the period. But allocating
fixed costs based on expected activity can result in suboptimal decisions. What is the answer? Focus on
capacity instead. © 2001 John Wiley & Sons, Inc.