An evaluation of alternative cost variance investigation models

dc.contributor.advisorLiao, Woody M.
dc.contributor.committeeMemberFinley, David R.
dc.contributor.committeeMemberFrancia, Arthur J.
dc.contributor.committeeMemberKao, Edward P.
dc.creatorKim, Soon-Kee
dc.description.abstractThe evaluation of alternative cost variance investigation models has received considerable attention in the past decade. In previous studies, only two types of investigation action have been considered: (1) full investigation, which assumes the acquisition of perfect information regarding an operation, and (2) no investigation. No previous study has considered a partial investigation as an alternative action. Due to time and budget constraints, decision makers may often be interested in only a partial investigation. Therefore, a need arises to incorporate a partial investigative action into the cost variance investigation models when their performances are compared and evaluated. This study is directed toward the examination of the effects of allowing a partial investigative action in the evaluation of four cost variance investigation models. To accomplish this purpose, two distinct decision rules are applied to each model: (a) the conventional decision rule, which allows only two types of investigative action (no or full investigation), and (b) the proposed decision rule, which allows three types of investigative action (no, full, or partial investigation). There are two major objectives of this study: (1) For each model, compare the relative performance of the proposed rule and conventional decision rule (the intra-model comparison); (2) Compare the performance of the four models under the proposed decision rule and compare the performance of the four models under the conventional decision rule (the inter-model comparison). The models selected for this study are: (1) the Simple Control Chart Model, (2) the Markovian Control Model, (3) the Decision Theory Model, and (4) the Dynamic Programming Model. [...]
dc.description.departmentBusiness, C. T. Bauer College of
dc.format.digitalOriginreformatted digital
dc.rightsThis item is protected by copyright but is made available here under a claim of fair use (17 U.S.C. Section 107) for non-profit research and educational purposes. Users of this work assume the responsibility for determining copyright status prior to reusing, publishing, or reproducing this item for purposes other than what is allowed by fair use or other copyright exemptions. Any reuse of this item in excess of fair use or other copyright exemptions requires express permission of the copyright holder.
dc.subjectCost control
dc.subjectAnalysis of variance
dc.titleAn evaluation of alternative cost variance investigation models
dc.type.genreThesis T. Bauer College of Business Administration, College of Administration of Houston of Philosophy


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