Title

Line Item Budgeting and Production Efficiency

Publication Date

11-15-2011

Abstract

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.

Publication Title

Journal of Theoretical Accounting Research,

Issue

1

First Page

108

Last Page

126

Open Access Status

OA Disciplinary Repository

Source Full-text URL

https://dx.doi.org/10.2139/ssrn.1300724

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