Cost-Volume-Profit Analysis Adjusted for Learning

A model is developed for cost-volume-profit analysis which incorporates a nonlinear cost function to express the effects of employee learning. Sensitivity analysis is applied to the model to assess the impact of estimation errors in the learning rate and steady-state production time on estimated profit and break-even quantities. The paper also examines the effects on the model of (1) alternative accounting treatments of production-related costs, and (2) continuous learning due to employee turnover.

• 저널Management Science · 24(2) · 149–160
• 토픽Accounting and Organizational Management · Management Information Systems
• DOI10.1287/mnsc.24.2.149
• 저자Edward V. McIntyre