The Economic Importance and Characteristics of Cost Calculation in the Clothing Industry in Romania

Abstract

By this paper, the author aim to highlight the importance of cost calculation in the clothingindustry in Romania. In order to achieve this goal, we have reviewed the literature in this field. Based on a literature review on cost calculation and on clothing industry we realised that in thethis field, the traditional method laying at the base of cost calculation for a product is order-basedmethod, and in certain cases the standard-cost method can also be applied. As a modern costcalculation method which can be applied in this industry we may mention the ABC method. The paper ends with the author conclusions regarding the implementation of a cost calculationmethod in the clothing industry as well as the main actions to be taken by clothing companies tohave competitive and innovative products and to cope with fierce competition.

Keywords

• cost calculation
• managerial accounting
• the clothing industry
• economic importance
• cost calculation methods