The classical foundations of 'modern' costing

摘要: Abstract 'Modern' costing emphasizes the importance of aggregation, cost drivers, and allocation, fine-tuned to production environment, in developing useful measures product value added. In this paper we take modern theme overlay it on classical theory cost. Aggregation enters form function separability. Cost driver identification focuses output vector. Non-volume drivers thus arise from condensed specification firm's This condensation occurs when drop some products view inappropriately aggregate output, for example treat two batches as units same product. The recurring themes non-volume linear, aggregation strategic management are then examined setting. Following this, speculate empirical considerations that presence measurement error lack independence observation generating process.