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Aspects Regarding The Application Of Direct-Costing In Taking The Managerial Decisions

Author

Listed:
  • Briciu Sorin

    () (University 1 Decembrie 1918, Alba Iulia, Faculty of Sciences)

  • Sas Florentina

    () (University 1 Decembrie 1918, Alba Iulia, Faculty of Sciences)

Abstract

Direct-costing represents a method of calculation which, although can not be used in financial reporting, represents a very strong instrument of analysis within reach of enterprise's management. The method direct-costing requires the delimitation between the variable and fixed costs and including in the cost of production of the variable costs, the fixed costs being considered costs of the period. Another important aspect is the difference between the methods of absorbent costs and the method direct costing. The making of rational decisions that can permit the obtaining of optimum results can be made only if it is taken into account the correlation between the fixed costs, the variable costs, the volume of activity and the price of selling of the products, correlation given by the specific indicators of the method direct-costing.

Suggested Citation

  • Briciu Sorin & Sas Florentina, 2008. "Aspects Regarding The Application Of Direct-Costing In Taking The Managerial Decisions," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 1058-1064, May.
  • Handle: RePEc:ora:journl:v:3:y:2008:i:1:p:1058-1064
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    File URL: http://steconomice.uoradea.ro/anale/volume/2008/v3-finances-banks-accountancy/194.pdf
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    More about this item

    Keywords

    Direct-costing; variable cost; fixed cost; cost of sub activity;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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