TAILIEUCHUNG - A comparative analysis of normal costing method with full costing and variable costing in internal reporting

In this study, the effects of choosing either full costing , variable costing or normal costing on costs in terms of varying amounts of production are analyzed | A comparative analysis of normal costing method with full costing and variable costing in internal reporting International Journal of Management IJM Volume 7 Issue 3 March-April 2016 pp. 79 92 Article ID IJM_07_03_009 Available online at http IJM JType IJM amp VType 7 amp IType 3 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication A COMPARATIVE ANALYSIS OF NORMAL COSTING METHOD WITH FULL COSTING AND VARIABLE COSTING IN INTERNAL REPORTING Aydın Gersil Asst. Prof. Department of International Trade Faculty of Business Administration Adnan Menderes University Soke Aydin Turkey Cevdet Kayal Assoc. Prof. Department of Business Administration Faculty of Economics and Administrative Sciences Celal Bayar University Manisa Turkey ABSTRACT Product costs are a significant determinant of both short-term and long- term decisions of businesses in terms of goal achievement. In determining the costs businesses are expected to consider both the characteristics of the market demand and the business itself. Product costs are calculated by cost calculation methods. Cost calculation methods are normal costing method full costing variable costing. Full costing treats the costs of all manufacturing components direct material direct labor variable factory overhead and fixed factory overhead as inventoriable or product costs. Variable costing is a cost accumalition method that includes only variable production costs direct materal direct labor and variable factory overhead as inventoriable or product cost. Normal costing method takes into account all the variable parts of production costs. The method handles fixed operating costs according to the rate of capacity utilization. In this study the effects of choosing either full costing variable costing or normal costing on costs in terms of varying amounts of production are analyzed Key words Normal Costing Full Costing Variable .

• Tài chính doanh nghiệp
• Effects of choosing either full costing
• Terms of varying amounts of production
• Characteristics of the market
• Rate of capacity utilization
• Normal costing method