Abstract:

 In studying the household industry， there are two classic models: Chayanov’s “farm household model” and Becker’s “household production model”. This paper reports the findings of a case study on the action logic in the cost analysis and managerial decision making in the plastic industry in Baiyangdian， Hebei province. To the families in the household industry during industrialization， the imperfect productionelements market and the unique organizational property of the household industry have not only made production decisionmaking inseparable from consumption decisionmaking but also have subjected the two to the influence of the household structure that is related to the family life cycle even when only general commodities are produced for the market. 

Key words:  “dualproduction” model, family life cycle, household industry