Line Item Budgeting and Production Efficiency
Line item budgeting is a widely used managerial control device in governmental and nonprofit organizations. In this study, we explicitly model the relationship between input quantities and their prices with particular focus on the line item budgeting assumption of input separability, i.e., optimal quantity for each input is determined separately and independently of other inputs. Our empirical results support input separability and reject input substitutability.
Journal of Theoretical Accounting Research,
Open Access Status
OA Disciplinary Repository
Banker, Rajiv D.; Chang, Hsihui; and Feroz, Ehsan H., "Line Item Budgeting and Production Efficiency" (2011). Business Publications. 173.
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