A
5 O2
0
O1
Labor per
time period
0 1 2 3 4 5 6 7 8 9 1
New Management Tools
• Benchmarking : - global,local,internal
• Total Quality Management
• Reengineering :reverse direction
• The learning organization
• Innovation: product,processes,procedure
Conclusion
Cost function are the foundation for helping to
determine profit maximizing behavior