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Análisis del comportamiento de los resultados en 'full' y 'direct costing'
Argilés, Josep M.
Universitat Pompeu Fabra. Departament d'Economia i Empresa
In this paper we perform a mathematical analyse of profits and losses indirect and full costing. They are compared in different situations, mainlythe utilisation of productive capacity and the existence of beginninginventories. Direct costing was conceived as a system of cost accountingwhich would show profits as a function of sales. In full costing profitsdepend on available combinations of sales, production, costs of beginninginventories, etc., and information displayed in financial statements displayappears incongruent. Differences in profits with full and direct costingincrease when full costing allocates fixed costs according to normalproduction, in some cases differences, and financial statements would showmore incongruent performance. It is concluded about the importance thatprofit and loss statement expresses profits in both costing systems.
Finance and Accounting
full costing
direct costing
variable costing
allocation of fixed cost with normal capacity
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