DocumentCode :
1159995
Title :
Ad Hoc Production Decisions and Imputed Costs
Author :
Weissenberger, Stein
Issue :
12
fYear :
1976
Firstpage :
807
Lastpage :
812
Abstract :
A simple argument is used to demonstrate that economically ad hoc (but technically efficient) production decisions give rise to imputed marginal costs of all inputs, provided at least one marginal cost is given. These imputed or de facto costs have a number of important uses in problems where there is a high degree of uncertainty or controversy surrounding the true values involved; and their existence tends to contradict the common assertion that ad hoc decision methods avoid the necessity (and responsibility) for evaluating certain costs. A number of application areas are indicated. An example from a recent study of electrical power generation is carried along as a primary illustration of concepts; another example involving a space heating system is considered in some detail at the end.
Keywords :
Cost accounting; Cost function; Decision making; Mechanical engineering; Pollution; Power generation; Power generation economics; Production; Space heating; Uncertainty;
fLanguage :
English
Journal_Title :
Systems, Man and Cybernetics, IEEE Transactions on
Publisher :
ieee
ISSN :
0018-9472
Type :
jour
DOI :
10.1109/TSMC.1976.4309476
Filename :
4309476
Link To Document :
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