Multiproduct CVP analysis based on contribution rules

  1. González, L. 1
  1. 1 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Zeitschrift:
International Journal of Production Economics

ISSN: 0925-5273

Datum der Publikation: 2001

Ausgabe: 73

Nummer: 3

Seiten: 273-284

Art: Artikel

DOI: 10.1016/S0925-5273(01)00116-5 SCOPUS: 2-s2.0-0035887236 WoS: WOS:000171869400007 GOOGLE SCHOLAR

Andere Publikationen in: International Journal of Production Economics

Institutionelles Repository: lock_openOpen Access Editor

Zusammenfassung

The basic cost-volume-profit (CVP) model - linear, non-stochastic and restricted to one product - has been the subject of research work aimed at relaxing these limiting assumptions. Regarding its extension to a multiproduct situation, the two alternatives are to use a standard mix, or to apply linear programming. This paper develops an alternative model for multiproduct CVP. It uses data provided by ABC systems designed to keep track of variable and fixed costs, and requires the model user to formulate a contribution rule that will allow to compute, for each product, the output required to achieve a given (target) profit. © 2001 Elsevier Science B.V. All rights reserved.