The Role of Cost Accounting in the Management of the Activity Center

Ruse Elena () and Susmanschi Georgiana ()
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Ruse Elena: Andrei Saguna University
Susmanschi Georgiana: Spiru Haret University

Ovidius University Annals, Economic Sciences Series, 2013, vol. XIII, issue 1, 1471-1474

Abstract: Cost accounting is supporting managers to establish the development strategy of the company. The information provided is used in the decision making process regarding the production and marketing of products. Estimating the future cost influences the development strategy of an activity. Thus, there are costs that vary proportionally with the volume of production, while others remain fixed whatever changes appear in the business volume. Analysis of costs evolution is related to the type of calculation method. Rapid determination of production costs can be achieved using an evolved method as variable costs method, which allows the calculation of some broad-spectrum indicators, necessary to support decisions. Extended version of the method emphasizes profitability analysis based on sales volume through indicators such as: balance point, range safety and so on. Thus, the analysis based on the relation „Cost-Volume-Profit” can be used in order to optimize the results of the activity center.

Keywords: cost accounting; direct-costing; cost analysis. (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:1:p:1471-1474

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