Cost theory
The cost theory is a branch of production and cost theory to a field of Business Administration , which deals with cost factors , the amount and types of costs busy and using cost functions shows the optimal design of the costs. It is related to the production theory , which only considers the consumed and generated quantities of production factors, while the cost theory evaluates the factor consumption with costs in order to be able to compare consumption in different units of measure (tons, pieces, liters etc.).
It builds on the production functions in order to explain the course of costs and provides evaluation criteria for the comparison of several technically efficient production functions.
If, for example, two processes are available for the production of a certain product, the first only requiring 5 units of quantity of a factor and the second only 6 units of quantity of the same factor, the former is technically efficient because it does not waste anything. If, on the other hand, there are two other functions to choose from, both of which depend on the factors and , one cannot easily choose between the two technically efficient functions and . Only after evaluating the factor consumption with costs is it possible to decide which function leads to the lower costs and is therefore economically efficient .
literature
- Edmund Heinen : Business cost theory . 6th edition Gabler, Wiesbaden 1983, ISBN 3-409-33629-X (EA Wiesbaden 1959).
- Hans-Ulrich Küpper : Production and cost theory. Basics, applications . 2nd edition Gabler, Wiesbaden 1997, ISBN 3-409-12167-6 (EA Wiesbaden 1976).
- Walther Busse von Colbe , Gert Laßmann: Business Theory , Vol. 1: Fundamentals, Production and Cost Theory . 5th edition Springer, Berlin 1991, ISBN 3-540-54101-2 (EA Berlin 1975).
Individual evidence
- ^ Hans Corsten: Production Management . Introduction to industrial production management . 6th edition. Verlag Oldenbourg, Munich 1996, ISBN 3-486-23836-1 , pp. 79-88 (EA Munich 1990).