Thépot, Jacques; Netzer, Jean-Luc - Laboratoire de Recherche en Gestion (LaRGE), Institut … - 2007
Most companies prefer to use absorption costing rule rather than marginal cost pricing. This article is aimed at defining the absorption costing rule as deriving from a principal-agent formulation of two tier organizations : (i) the upstream unit fixes the production capacity and uses it as a...