By James L. Gibson, W. Warren Haynes
Accounting in Small enterprise Decisions offers the 1st large-scale empirical exam of the way small businesses use accounting information to make working judgements.
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There can be no dogmatic conclusions about what degree of theoretical refinement is justified in practical, day-to-day business, especially the small business in which the expenses of refinement are a real barrier to the full application of economic analysis. We hope that an intensive study of actual cases will help determine the extent to which small firms can afford to carry their analysis, whether this analysis is accounting or economic in character. 22 2 GARDEN AND LANDSCAPE NURSERIES u4 T FIRST glance one might well wonder at the significance attached to plant nurseries by giving over a whole chapter to discussing them.
The aim should be to equate the discounted marginal contributions from each plant variety-that is, to expand the production and lower the price on high contribution items and contract the production and raise the price on low 33 contribution items until both make the same discounted marginal contribution per unit of land. Certainty model: other decisions Take, for example, a problem that is quite common in nurseries. Five evergreens are left on a particular block of land. 7 If they were cleared from the land, the whole block could be planted anew.
He continued to grow the plants because some customers expected him to maintain a complete line. He recognized that competition placed a ceiling on what he could charge. Another manager discussed the same point in a different way. He felt the pressure of competition from nurseries to the south and north: to the south, cost and prices are lower; to the north, they are higher. He thought that he had to maintain his prices between these two. But it became clear upon further questioning that he did not study the prices of these competing nurseries systematically.
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