THE COST CALCULATION – THE IMPORTANCE OF ESTABLISHING OF A CORRECT STRUCTURE OF UNITARY COST

Abstract

The paper presents the importance of using a correct cost structure in the cost calculation, in accordance with the current legislation. The paper presents a hypothetical study on the cost calculation, according to the model of the complete cost structure, specified by the legislator in the Order of the Minister of Public Finance no. 1826/2003 for the approval of the Regulations on measures regarding the organization and management of the management accounting. The main research methods used in the study were documentation and analysis. In order to correctly apply of the cost calculation, I recommend the following: the proper codification of products launched in production, the correct control and recording of direct and indirect costs and the application of the most appropriate basis for allocating indirect costs. Also, in order to calculate correct the costs, it is necessary to use the calculation items provided in the cost structure, such us: direct expenses, indirect production expenses, general administration expenses and selling expenses.

Keywords

• expenses
• cost calculation
• cost structure
• complete cost
• managerial accounting