Linear Programs In Cost Accounting : A Linear Cost Model

This paper aims to find unit cost of a product for firms. It establishes a linear cost model to find unit cost. Linear goal programs assume a direct relationship between independent variable and dependent variable. Dependent variable of linear model is unit cost. Independent variables are cost accounting variables. They are supply cost, labor cost, and administration cost. This study assumes a direct relation between supply-labor-administration costs and unit cost. Therefore, it establishes a linear cost model. Major research question of this study is to apply linear goal programming to cost accounting. The goal of this linear program is to find unit cost of product. This study uses quantitative method and human capital method. Main research result is linear costing model itself