IMPACT OF PARTIAL COST ANALYSIS ON THE ENTIRE DECISION-MAKING PROCESS
IMPACT OF PARTIAL COST ANALYSIS ON THE ENTIRE DECISION-MAKING PROCESS

Author(s): Camelia Cătălina Mihalciuc, Maria Grosu
Subject(s): Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: managerial accounting; cost; partial costs;
Summary/Abstract: The financial information that managers receive in their internal reports mainly refers to costs and this relevant information is important in the decisional alternatives. Within these internal reports intended for direct beneficiaries who are managers, there are presented methods and approaches related to the calculation and delimitation of costs, this calculation considered by the managerial accounting. This cost information is used by managers to exercise managerial functions, namely planning, control, decision-making and administrative responsibility. As regards the calculation of costs, in terms of costing, it is very important the purpose for which a cost element should be determined, in which it is necessary to choose different approaches and calculation methods. Starting from these aspects, the overall objective of this paper focuses on knowing the behavior of costs and cost calculation by using the specific procedures and methods, based on the application of certain stages, which separates the total expenses that form a cost element into fixed and variable ones. Another important point to be highlighted is that these procedures are useful tools in the predictive calculation. The information on costs represents the resource regarding the database related to the productive process, thus forming the support of the decision-making system.

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