Análisis del comportamiento de los resultados en 'full' y 'direct costing'
Josep M. Argilés
In this paper we perform a mathematical analyse of profits and losses in direct and full costing. They are compared in different situations, mainly the utilisation of productive capacity and the existence of beginning inventories. Direct costing was conceived as a system of cost accounting which would show profits as a function of sales. In full costing profits depend on available combinations of sales, production, costs of beginning inventories, etc., and information displayed in financial statements display appears incongruent. Differences in profits with full and direct costing increase when full costing allocates fixed costs according to normal production, in some cases differences, and financial statements would show more incongruent performance. It is concluded about the importance that profit and loss statement expresses profits in both costing systems.
Full costing, direct costing, variable costing, allocation of fixed cost with normal capacity
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