| 18905 |
Creator |
10a05139fb3b4fb7c4fd7500b85de8c5 |
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Date |
2003 |
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Is Part Of |
p10445005 |
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Is Part Of |
repository |
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abstract |
Many accountants seem to have accepted the existence of a ‘reality gap’ between management
accounting’s conventional wisdom, based on the neoclassical economic theory of the
firm and actual business practice. Whilst the former recommends the use of a decision
relevant cost approach to pricing decisions, the latter is believed to be dominated
by a full cost plus approach to pricing. In accepting the existence of a reality gap,
accountants do not seem to have addressed the arguments of economists. These arguments
seriously undermine the research findings of accountants that have given rise to the
belief in such a gap. On the other hand, the empirical evidence supporting neoclassical
price theory is not strong and much of the research that generated it is methodologically
flawed. This paper evaluates the research supporting the accountants’ and economists’
respective positions and argues that neither is strongly supported by the conflicting
empirical evidence. It then identifies the issues that need to be resolved by future
research intended to assess whether empirical evidence supports neoclassical price
theory or (full) cost plus pricing. |
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authorList |
authors |
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issue |
3 |
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status |
peerReviewed |
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volume |
14 |
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type |
AcademicArticle |
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type |
Article |
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label |
Lucas, M. R. (2003). Pricing decisions and the neoclassical theory of the firm.
Management Accounting Research, 14(3) pp. 201–217. |
| 18905 |
label |
Lucas, M. R. (2003). Pricing decisions and the neoclassical theory of the firm.
Management Accounting Research, 14(3) pp. 201–217. |
| 18905 |
Title |
Pricing decisions and the neoclassical theory of the firm |
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in dataset |
oro |