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Reference no. 9-892-010
Published by: Harvard Business Publishing
Originally published in: 1991
Version: 5 August 1994

Abstract

Develops the idea that the relevance of costs and revenues depends on what decisions are under consideration. Revenues and costs are relevant if they would be different under one decision choice than under the other. Teaching purpose: Basic background material for decision making under certainty and under uncertainty. Provides a framework under which a variety of costs and revenues, resulting from substitution, complementarity, capacity, etc, can be identified as relevant.

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Abstract

Develops the idea that the relevance of costs and revenues depends on what decisions are under consideration. Revenues and costs are relevant if they would be different under one decision choice than under the other. Teaching purpose: Basic background material for decision making under certainty and under uncertainty. Provides a framework under which a variety of costs and revenues, resulting from substitution, complementarity, capacity, etc, can be identified as relevant.

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