Cost Accounting and Production Control in a Multiproduct Environment – The Unit of Production Effort Method
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 October 1992
Abstract
Takes a fresh look at the nature of the problem of allocating costs and control processes for a variable product mix. Adopts a novel approach called the “Unit of Production Effort” method. The method creates a common measure throughout the production process which can then be used in all costing, planning and comparison activities. Describes the initial stages of a practical implementation of the method to a small manufacturing company to illustrate the way in which it can be applied in a real situation. The results suggest that the method provides a radical simplification of the multi‐product environment which will be of interest to a broad cross‐section of professionals ranging from theorists to practising financial and production managers.
Keywords
Citation
Henrique Rodrigues, L. and Brady, G. (1992), "Cost Accounting and Production Control in a Multiproduct Environment – The Unit of Production Effort Method", International Journal of Operations & Production Management, Vol. 12 No. 10, pp. 66-80. https://doi.org/10.1108/01443579210017277
Publisher
:MCB UP Ltd
Copyright © 1992, MCB UP Limited