Advances in Cost Frontier Analysis of the Firm

Emili Grifell Tatje, C. A.Knox Lovell, Robin Sickles (Editor)

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Resum

We study various analytical frameworks relating productivity change to change in the cost structure and cost efficiency of the firm. We begin by motivating a focus on the cost side, and not the revenue side, of the profit objective of the firm. We continue by relating the cost accounting tool of standard cost variance analysis to the economics tool of cost efficiency analysis. We focus on managerially controllable drivers of cost efficiency, including productivity change and its components. We conclude by noting some significant empirical applications of the analysis, by recommending cost efficiency analysis as a valuable tool for benchmarking against the best, and by suggesting some new directions for research.
Idioma originalAnglès
Títol de la publicacióOxford Handbook of Managerial Economics
Lloc de publicacióNew York
Capítol4
Pàgines66 – 88
Nombre de pàgines22
DOIs
Estat de la publicacióPublicada - 1 d’oct. 2013

Sèrie de publicacions

NomThe Oxford Handbooks of Economics and Finance
EditorOxford University Press

Keywords

  • cost variance analysis
  • cost variance drivers
  • cost frontier analysis
  • unit cost frontiers
  • labor cost productivity
  • benchmarking

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