Mihaela (Ștefan) Hint
The purpose of this article is to highlight both costs and expenditures as economic indicators with which we can quantify the preparation of the decision-making process at the level of general management in an economic entity, but also the theory of systems because any economic agent itself represents a system and all consumption Of goods or services spent inside or outside the system can be considered sacrifices that the economic agent undertakes in order to obtain better results and see the possibility in which it can be used in the lighting equipment industry.
The article analyses the concept of cost, expense and costing systems based on the literature, from the moment of the presentation of the management accounting to the present.
The careful examination of the specialized literature shows that the specialized papers refer to the role and objectives of the management accounting according to the internal requirements of the economic entities, without being able to give an exact definition: unitary and acknowledged.
In order to correlate the literature with the accounting results I chose to exemplify the implementation of the costing system in the electric lighting industry, within the economic entity of Electromax S.R.L. The accounting system that applies to economic entities depends on the objectives they set and the information management requirement. In the practice of economic entities, there are two accounting systems, namely: an integrated accounting system and a non-integrated, self-contained accounting system. The organization of a cost accounting system is closely linked to financial accounting, providing information on expenditure and revenue. In fact, there is the question of reporting internal flows that allow costs and results to emerge.
For economic entities in the lighting equipment industry, the cost accounting autonomy compared to financial accounting generally implies reconciliation in the results of the two accounts because each accounting calculates a result. In principle, the two results are not equal, but in reality they must be equal.
JEL Classification: M41
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