IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vixy2006i3-4p35-46.html
   My bibliography  Save this article

Stochastic Estimation of the Raw Materials Cost and the Determination of The Mean-Expected Total Product Cost : Analysis and Application

Author

Listed:
  • Ioannis Ananiadis
  • Dimitrios Kousenidis

Abstract

The present paper offers an alternative way of estimating the mean expected cost of raw materials so as to improve the estimation of the expected total productcost without expanding beyond the framework of measuring and controlling the efficiency of the business. Apart from the estimation methodology proposed, the paper also focuses on the implications of the variance between expected and actual raw materials cost. In this respect, the paper is potentially interesting for managers because it offers new information that can help their decision making process in three different ways: first, it may help managers to redefine the targets of their business; second, it offers managers the insights that could help them take the required corrective actions; and third, it helps managers to better analyze the raw-materials variances in a way that the prevailing estimated cost is both realistic and effective.

Suggested Citation

  • Ioannis Ananiadis & Dimitrios Kousenidis, 2006. "Stochastic Estimation of the Raw Materials Cost and the Determination of The Mean-Expected Total Product Cost : Analysis and Application," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 35-46.
    • Handle: RePEc:ers:journl:v:ix:y:2006:i:3-4:p:35-46
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/06_34_p3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Trond Bjørnenak & Falconer Mitchell, 2002. "The development of activity-based costing journal literature, 1987-2000," European Accounting Review, Taylor & Francis Journals, vol. 11(3), pages 481-508.
    2. Dickinson, Jp, 1974. "Cost-Volume-Profit Analysis Under Uncertainty," Journal of Accounting Research, Wiley Blackwell, vol. 12(1), pages 182-187.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karim Charaf & Ahmed Fath-Allah Rahmouni & Mohamed Sabar, 2022. "The Association Between Activity-Based Costing And Performance: Empirical Evidence From Moroccan Companies," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 21(1), pages 25-50, March.
    2. Ildikó Réka CARDOS & Stefan PETE, 2011. "Activity-based Costing (ABC) and Activity-based Management(ABM)Implementation – Is This the Solution for Organizations to Gain Profitability?," Romanian Journal of Economics, Institute of National Economy, vol. 32(1(41)), pages 151-168, June.
    3. Maria-Victòria Sánchez-Rebull & Angels Niñerola & Ana-Beatriz Hernández-Lara, 2023. "After 30 Years, What Has Happened to Activity-Based Costing? A Systematic Literature Review," SAGE Open, , vol. 13(2), pages 21582440231, June.
    4. Ildikó Réka CARDOS & Stefan PETE & Vasile Daniel CARDOS, 2012. "An Overview On The Adoption And Implementation Of Activity - Based Costing In Practice," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 185-200, December.
    5. Al-Sayed, Mahmoud & Dugdale, David, 2016. "Activity-based innovations in the UK manufacturing sector: Extent, adoption process patterns and contingency factors," The British Accounting Review, Elsevier, vol. 48(1), pages 38-58.
    6. Ebipanipre Gabriel Mieseigha, 2014. "Activity Based Costing and Product Pricing Decision: the Nigerian Case," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 10(3), pages 73-81, June.

    More about this item

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:ix:y:2006:i:3-4:p:35-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.