Open AccessMethodology of applying standard costing and normative methods in manufacturing enterprises
Author(s) -
Daiva Tamulevičienė,
Jonas Mackevičius,
Lionius Gaižauskas
Publication year - 2020
Publication title -
buhalterinės apskaitos teorija ir praktika/buhalterinės apskaitos teorija ir praktika
Language(s) - English
Resource type - Journals
eISSN - 2538-8762
pISSN - 1822-8682
DOI - 10.15388/batp.2020.19
Subject(s) - activity based costing , normative , profitability index , cost accounting , production (economics) , profit (economics) , business , production cost , computer science , operations management , risk analysis (engineering) , operations research , accounting , economics , engineering , finance , microeconomics , mechanical engineering , philosophy , epistemology
Appropriate choice of the production cost calculation methods helps not only to estimate the production cost correctly, but also to correctly determine prices of products as well as their profit and profitability, draw up budgets, control expenses, make operational and prospective management decisions. The article analyses effective standard costing and normative methods that are still seldom applied in Lithuanian enterprises. A brief history of how the methods were created is provided. The advantages and aims as well as their similarities and differences are analysed. A methodology of applying standard costing and normative methods in manufacturing enterprises was prepared. Application of these methodologies is going to help managers and accountants to introduce the methods easier and at a lower cost.