Abstract: Takes a fresh look at the nature of the problem of allocating costs and control processes for a variable product mix. Adopts a novel approach called the “Unit of Production Effort” method. The method creates a common measure throughout the production process which can then be used in all costing, planning and comparison activities. Describes the initial stages of a practical implementation of the method to a small manufacturing company to illustrate the way in which it can be applied in a real situation. The results suggest that the method provides a radical simplification of the multi-product environment which will be of interest to a broad cross-section of professionals ranging from theorists to practising financial and production managers.
Journal: Production and Operations Management, Inglaterra, v. 12, 1992.
Authors: Luis Henrique Rodrigues, Graham Brady.