COMPARISON OF MANAGERIAL IMPLICATIONS FOR UTILIZATION OF VARIABLE COSTING AND THROUGHPUT ACCOUNTING METHODS

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F15%3A43873072" target="_blank" >RIV/70883521:28120/15:43873072 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
COMPARISON OF MANAGERIAL IMPLICATIONS FOR UTILIZATION OF VARIABLE COSTING AND THROUGHPUT ACCOUNTING METHODS
Original language description
Variable costing (VC) and throughput accounting (TA) are methods frequently used for decisions affecting product mix. Both methods feature some similarities in data processing, but they are applied in different situations. The VC method is preferred in situations when product mix decisions are based on maximizing a product´s contribution margin, while TA depends on maximum utilization of resource constraints. Both take a different approach to variable costs, which are assigned to individual products. While TA conceives of total variable cost in the meaning of absolute variable cost, VA accepts the maximum level of variable cost. The objective of the study presented herein is to analyze the differing approaches of the VA and TA methods to cost variability and any consequent managerial implications. Adhering to a different approach to variable costs could result in a variety of product mix decisions. Such distinctions between the methods are given, through the analysis of several examples, and the authors’ final conclusions on making effective product mix decisions are deduced.
Czech name
—
Czech description
—

Project
<a href="/en/project/GP14-21654P" target="_blank" >GP14-21654P: Variability of Cost Groups and its Projection in the Costing System in Manufacturing Enterprises</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 7th International Scientific Conference Finance and the Performance of Firms in Science, Education and Practice
ISBN
978-80-7454-482-8
ISSN
—
e-ISSN
neuvedeno
Number of pages
11
Pages from-to
1112-1122
Publisher name
Fakulta managementu a ekonomiky, UTB ve Zlíně
Place of publication
Zlín
Event location
Zlín
Event date
Apr 23, 2015
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
—

Similar results(10)