CALCULATING THE COST OF PRODUCTION AND THE COST ACCOUNTING METHOD

Abstract

It is more profitable to manage costs than to increase sales. Therefore, cost management is the most developing area of both the economic practice of enterprises and Western theoretical research in recent decades. An understanding of this problem is already being observed, but these are only the concepts of "costs" and "cost as the sum of costs" in accounting the most uncertain. Without further explanation, each specialist can mean by them a variety of possible meanings. The theoretical basis of cost calculation with full cost allocation assumes the inclusion in the cost of all production costs, regardless of whether they are constant or variable. At the heart of this logic is the understanding of the fact that production is impossible without fixed costs.