We examine how the demand for inter-departmental coordination changes as the firm increases the sophistication of its accounting system. In our model, a production department performs cost reduction and manufactures the product, while a marketing department sets prices and sells the final...

We demonstrate the need to view in a dynamic context any decision based on limited information. We focus on the use of product costs in selecting the product portfolio. We show how ex post data regarding the actual costs from implementing the decision leads to updating of product cost estimates...

This paper aims to advance the use of numerical experiments to investigate issues that surround the design of cost systems. As with laboratory and field experiments, researchers must decide on the independent variables and their levels, the experimental design, and the dependent variables....