The Possibility Of Applying The Order Costing Calculation Method To An Economic Entity In Romania

The way management accounting is organized is at the discretion of each economic entity, depending on the specifics of the activity and its own needs. This study deals with the development stages of the order costing method, which is influenced by the peculiarities of the organization and production technology, as well as the complexity of the manufactured products. From a theoretical and applied point of view, the methodological steps taken in management accounting and the calculation of the costs of the products obtained by an economic entity specialized in the production of specific equipment for the sorting and recycling of household waste are addressed. The traditional costing method fails to reflect the realities of the manufacturing process and ignores external factors, which inhibits the orientation of the economic entity towards changing the market, processes, and technologies, on the way to improve the response to customer needs, so new possibilities are constantly sought maintaining and increasing the company’s competitiveness on the domestic and foreign markets. The authors of this study present how the order method can contribute to improving the performance of a company in the field. The article ends with the authors’ conclusions regarding the application of the method on order costing in this company.