Implementation of strategic principles in cost management: Control of cost variations through statistical studies

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1 Afrian Journal of Business Management Vol6 (45), pp , 14 November 1 Available online at DOI: 15897/AJBM ISSN Aademi Journals Full Length Researh Paper Implementation of strategi priniples in ost management: Control of ost variations through statistial studies Cerasela Pirvu, Laura Vasilesu*, Ana Mehedintu and Cristian Dan Pirvu University of Craiova, Romania Aepted 9 June, 1 The knowledge about osts and their evolution represent an essential element in deision proess The priority given to the ost analysis in the deision proess an be explained through the fat that often the main fator is the finanial impliation of the seleted deision made by the manager The management of a ompany an find in the ost information an important instrument for adjustment, orientation and optimization of the operational and future ativity beause the ost appears in all its ativities The paper presents some aspets regarding the osts and their role in the management of enterprise beause the information onerning osts play a vital part in formulating more performing strategies to get lasting ompetitive advantage We intend to highlight the importane of the strategi planning and the role of osts management in a business medium, beause the osts struture an be really an advantage in establishing the way in whih the performane an be obtained a durable ompetitive advantage (M Porter, 1) The reent evolution of the management aounting is essentially haraterized by the passing from an information system to a whole bunh of instruments guided towards outward part, strategy and future Under these onditions, our paper tries to point out the neessity of inlusion the priniples of strategy into the management of osts Therefore, we onsider a neessity of a managerial, ontemporary system Suh an approah lays down the premises of a new philosophy of osts and opens new perspetives of approahing the management aounting As result of the reent theories regarding the osts and their determinants fators, theories that ontradited the dominated idea in the lassial analyti theory aordingly whose prodution volume determine the osts, at present, the ost management should onsider the variety and omplexity of all fators Considering the randomly harater of these fators influene, for getting some rigorous results that an be the basis for adopting some effiient deisions, in the paper we propose statistial studies based on the influene of the determinant fators, studies based on the using of notions from probability theory and mathematial statistis The main purpose of these studies is represented by the ontrol of ost evolution, in the ondition of inertitude and risk for the ompanies ativity Keywords: Costs, Management aounting, Strategi management of osts, Inertitude, Risk, Statistial studies, Mathematial statistis INTRODUCTION The inlusion of the priniples of strategy into the management of osts is onsidered, from our point of *Corresponding author laura_giura_vasilesu@yahooom view, a neessity of the managerial and ontemporary system is important beause the reent evolution of the management aounting is essentially haraterized by the passing from an information system to a whole bunh of instruments guided towards outward part, towards strategy, and towards future The onnetion between the management aounting

2 1116 Afr J Bus Manage and strategy beomes more and more obvious in the speialized literature (Dubrulle, ; Hohmann, 4; Abdel-Kader and Luther, 4; Bouquin, 6) This link between the two is seen as a possible key to solve the problems with whih the lassi, analytial aountany deals with This idea seems to be more and more sustained, and probably, we think, this shall be the way whih management aounting shall follow in its future development In this ontext, we intend to realize a dynami analysis of the evolution of strategy and of ourse, of that of management aounting and we also want to highlight the harateristis and stakes of these onepts in the new onditions imposed by the hanges ourred in the business area In most of those speialized works that define the management aounting and its objetives, diret or indiret referenes to the nature and to the substane of the strategi proess are made On the other hand, the analysis of the evolution of the strategy allowed us to be aware of the neessary implementation of the strategi priniples into management aounting and allowed us to identify the instruments of the strategi management aounting and also allowed us to know the strategi ontext in whih these appeared and are developed In the last years, the instruments of the management aounting and their role have been the issue of many studies and debates (Johnson and Kaplan, 1987; Burlaud and Simon, 1999; Diaonu et al, 3; Albu and Albu, 3; Bouquin 6), taking into onsideration the ritis of those instruments thought to be traditional ones (Johnson and Kaplan, 1987; Lorino, 1997) International Federation of Aountants made in 1998 a division into periods of the management aounting s evolution that has the following stages: On the first stage that orresponds to the period until 195 the management aounting had as its main onern determining the omplete osts and the finanial ontrolling In this period, the management aounting is onsidered to be a tehnial neessary ativity in order to aomplish the organization s objetives, oriented to determining the ost of prodution Management aounting appears as a result of the managers needs to rule their business The development of the industrial organizations asks for adequate instruments to be used The seond stage after 1965 is haraterized by the interest of the management aounting for the prodution of information needed for the aounting planning and ontrolling The turning point is that of defining and plaing the ontrol as a funtion of the management, and, espeially, formalizing Anthony s relation between ontrol and strategy (Burlaud and Simon, 1999) Control must ontribute to the aomplishment of the organization s objetives and must also assure the behavior s oordination and motivation The lassial organizational ontrol system starts to take shape, with Anthony s priniples, an adequate system to the stable environment appropriate for using the routines At the beginning, the management aounting is a managerial ativity, almost exlusively direted towards the internal management and less towards the environment or strategy In 197, the ontingent theory expanded the oneptual frame of aountany by the neessity of integration into the instruments of those fators that influene the organizational ontrol (strategy, environment, tehnology) In the third stage after the management aounting was interested in reduing the waste of resoures used into an organization by applying those tehniques of the management of the osts The transformations that our in the environment all for new managerial tehniques: flexible manufaturing systems, Just-In-Time systems (JIT), supply hain management, Total Quality Management (TQM), materials requirement planning These, in their turn, involve developments in management aounting: Target osting, value engineering, strategi ost aounting, ativity-based osting/ management (ABC/M), Kaizen osting, nonfinanial indiators The fourth stage after the interest of the administrative aountany is that of reating or produing value by the effetive and effiient use of resoures, through tehniques that should allow the analysis of the value indutors for the lient, for the shareholder, by organizational innovation In 199, the planning, ontrol and diminishment of the waste get strategi dimensions, beause now the fous is on the prodution of value by identifying and measuring, and through the value management for the lients, but also through innovating and administrating the relations with the lients The management based on value is built upon previous praties (Ittner and Larker, 1) and is made partiularly of those models that measure performane, seen as models of the ompany onsidered as a system, that reflet the organizational knowledge of the relations along the hain of value (Malina and Selto, 4) It an be notied that the last two stages bring a hange of view meaning whih onsists on the passing from providing information to the resoures management Information itself beomes a resoure, asking for bookkeeping and for the prodution of value Moreover, the management aounting beomes a very important part of the managerial proess (Abdel-Kader and Luther, 4), evolving from the diretion almost exlusively finanial (whih was based on the finanial measures that reflet the result of the past deisions) towards strategi approahes (Ittner and Larker, 1) A strategial approah take into onsideration non-finanial performane measures whih have as aim the appliane of

3 Pirvu et al speifi measure that an ensure the firm suess, suh as: quality, lients satisfation, reation time, tehnologial advantage, leader position on the market Some authors (Waal, 7; Abdel-Kader and Luther, 4) laim that the new managerial tehniques and the omplexity rise were the fundamental fators of the evolution of management aounting, showing that these new tehniques influened the whole proess of the management aounting (planning, ontrol, making deisions and ommuniation) and hanged the entre of gravity Thus, from a simple role of finding out the osts and finanial ontrol, the management aounting direts itself to produing value by improving the way in whih resoures are used Besides the modern tehniques, the strategi management of osts brought has a novelty element that it onsidered the ost as being determined by numerous fators: a) Strutural determinant b) Exeution determinant The strutural determinants fators take into onsideration the eonomi struture of the firm, the main fators identified being the followings: the sale (how muh is invested in prodution, development and how muh for the trading), the field, experiene, tehnique and the omplexity Eah of these fators supposes to take a deision whih influenes the prodution osts From the five fators, the sale, field and the experiene presented interest for the strategy researhers Afterwards, the omplexity gained more attention (Kaplan and Cooper, 1998) The exeution determinant fators take into onsideration the firm s apaity to develop the established ativities and they are the followings: 1) The labor partiipation (the onept of labor ontribution to the quality improvement) ) The total quality administration (priniples and ahievements in the field of produt and proesses quality) 3) Using of the prodution apaities 4) Configuration and oneption of the produt 5) Exploitation of the relations suppliers-lients along the value hain As Shank and Govindarajan (1989) asserted: the first rule in order to know what the osts determine is to forget the priniple aordingly with the prodution volume that determine the osts Therefore, regarding the strategi analysis, the prodution volume is not the best way to explain the osts behavior The instruments of the strategi management osts are a part of the general evolution of strategy Thus, there are numerous impliations upon the management aountting s instruments: strategi planning, the importane of the organizational learning, partners et There was a onnetion between the evolution of the management aounting and strategy, but with a slight disparity: thus, the management aounting from 199 is based upon the researhes made in the strategy s field between the 197s and 198s The onept of strategi ontrol shows up in 197 In order to inrease the relevane of the management aounting, a rapprohement of the objetives and long term strategy must be done In this way there are two possible approahes: 1) The implementation of a sort of tehniques and praties, known as the strategi management aounting approah that has yet a limited usefulness, beause it does not expliitly inludes the strategi orientation among the ontrol system (Otley, 1999) ) The development of the entire ontrol system, in the sense of inluding the strategy (Simons, 1994), onsidering the organizational ontrol systems as pakages (Otley, 1999) The strategi ontrol is espeially made through non finanial indiators From a traditional point of view, strategy and management aounting have always been onsidered as distint parts of the managerial proess: the strategy is direted towards future, towards taking deisions on long term and it is qualitative, while the aountany is historial, short term direted to quantitative The strategy sees the ompany as a whole and is interested in synergies, while the management aounting divides the organization in ontrollable parts The rapprohement between the management aounting and the strategy supposes the integration of the strategi priniples suh as: a) Orientation to the future and the development of a long term plan for the business b) Orientation towards the exterior part of the ompany, towards the value hain ) Offering qualitative information (non finanial) The ost management has to take into onsideration the ativity domain of the firm For the firms whih develop ativities in high teh fields it is more important to pursue the researh-development expensed instead of the prodution osts In the firms from the other domains, a speial attention should be paid to the ontrol of the prodution osts Starting from the Porter thesis whih the durable ompetition advantage an ahieved either through the ost domination, or through differentiation the strategi management of osts has to adapt to eah of these two strategies The strategy of ost domination is based on the experiene urve This imposes high investment in modern equipments, an aggressive ommerial poliy whih an lead to the gain of new market shares, a

4 11164 Afr J Bus Manage rigorous ontrol of the indiret osts, a proper organization of prodution and of the distributions system Suh a strategy supposes the identifiation and exploitation of the possible soures of osts advantages for getting a margin of average ost above the ompletion, and fat that will lead to some ompetitive pries In this situation, the firm will offer its lients not very omplex produts but speial (generi) ones The firms whih hoose the strategy of ost domination will fous on the redution of osts The differentiation strategy impose the reation of something unique whih an be felt at the setor level, in order to reate a faithful lients and to get an overprie This is something that is pereived as unique and an be related to the produt image (exterior aspet, originality, quality) or an be related to the servies offered to the lients (tehnial assistane, after-selling guarantee servies) This strategy an be adapted better off than the reputation produts At the firms whih hoose the differentiation strategy, the ost management supposes the analysis of the osts struture and it will not fous on their redution Therefore, in the strategi management of osts, the role of ost analysis varies in funtion of the firm s option to be plaed against ompetition As well, a speial attention should be paid to the strategi ontext of the administration, the role of the aounting information onsists on the permission to define and put in pratie the strategies (Shank and Govindarajan, 1989) MATERIALS AND METHODS At the launh of a produt in fabriation, the prodution osts are based on the evolution of these osts in earlier periods and in funtion of speifi onditions that present some foreasts for future periods, using a series of statistial studies These take into aount the prie of raw materials and the ost of materials needed The osts thus alulated are valid for a longer or shorter period of time depending on the manner in whih they reat to ertain fators suh as: market flutuations, tehnology hanges, experiene, omplexity of tehnologial proesses, et Costs that, by their nature, are a measure of performane and profitability of an enterprise may be aeptable to the produer for a ertain period of time, but it must have a vision on the evolution of osts so that it an use the ost analysis to implement a poliy ost in strategi terms for the ompany At the same time, produers an thus benefit from the relevant information for determining the prie poliy for the use of a ertain tehnology or more effiient for the ondut of relations with suppliers and ustomers Suh poliies and suh strategies should be adopted so that they do not affet the prodution and of ourse, they meet the basi objetive: "obtaining of profit" In these irumstanes, the ompany an ontinue its work in good onditions and may possibly ontinue the expansion and development of its ativity All these aspets require the need for a systemati and rigorous monitoring of hanges and ost trends over time and an impliit effiient management of osts Of ourse, the study of the evolution of osts must be onduted in parallel with the study of hanges in selling pries While ost minimization is pursued with priority by produers, we an aept that some inrease in osts, in the ondition that pries reorded a level that ensures a minimum profit or a satisfatory profit for produers Considering the ost of a produt, it may be aeptable (under the onditions mentioned earlier) if it belongs to a tolerane interval allowed [ i, s] of length T d, whose enter is (Figure 1) We will onsider the ost of the produt as a random variable whose values are grouped, in general, around a entral group whih is usually the average of this random variable (in some ases it may be the median or module of the random variable) Given this entral group, the ost values admit ertain dispersion, entitled "dispersion field" and haraterized by the average square deviation or the amplitude If at any time, by writing a statistial study, we find that the enter of a group, that we onsider the average seletion of this random variable as being, then we an appreiate that for the respetive produt, the ost is properly determined But if the dispersion field does not exeed the tolerane interval [ i, s] we an say that the auray of the determination of ost is appropriate For establishment of some ontrol methods regarding the ost variation and evolution methods that ontribute to the inreasing of management effiieny for the ompanies, we propose a mathematial instrument based on notion of probability theory and mathematial statistis There are usually systemati auses that influene the dispersion enter and the dispersion field, but there are also non-systemati or random auses whose presene or deletion an not be sure Given that both the auses systemati deteted, they an be shelved, the ost variation is due to randomness (in other words, to non-systemati auses) Taking into onsideration that, we an say the proess of ost hange is stable if it meets ertain distribution law whih must be estimated with its parameters Considering this aspet, two problems arise: one first problem of estimating the probability distribution that follows the proess (that is to say, the establishment of the theoretial distribution based on statistial results) and a seond problem - that of estimating the parameters whih define the theoretial law that is estimated to ontinue Regarding the first problem, statistial studies were performed and were represented in a Cartesian system of oordinates The results obtained were ompared using the urve obtained from the graphs of the probability laws that define the known theories Based on the observed data, it is estimated that the proess of osts evolution follow a ertain probability distribution (normal distribution, the distribution of hi-square, Student's distribution, Fisher distribution) For a greater degree of safety, the hosen samples and periods should be representative, or possibly, it should be taken into aount the osts of some similar produts One established the theoretial distribution, based on the estimate, we proeed to solving the seond problem As we already know from the theory of estimation, the estimated values are obtained after statistial studies that are made for solving the first problem Aording to the same theory, there are several types of estimates for a ertain parameter of the probability distribution: a) Consistent estimate b) Corret estimate (shifted) ) Absolutely orret estimate (non-shifted) d) Maxim likelihood estimation In eonomis, in general, the estimates of -type (non-shifted) are onsidered the best We demonstrate that the average seletion is a non-shifted estimation of the theoretial average and the dispersion of seletion s is a shifted estimation from the theoretial dispersion A non-shifted estimate from the theoretial dispersion is the

5 Pirvu et al i s [ ] Figure 1 Tolerane interval [i, s] with enter 1 σ π m Figure Normal distribution hart dispersion of the modified seletion s, where: s n n C 1 s Based on several statistial studies arried out on some produts from the furniture industry, we notied that the graphial representation of the resulting data, follow similar urves to the probability funtion graph aording to the normal law (Figure ) This poses the problem of estimating the two parameters of this, that is m and σ Reall that in the ase of the normal distribution probability funtion (probability density) is: f ( x m) 1 σ, e ( x m, σ ) σ π We will have the estimations: m σ s On the basis of statistial studies onduted should be determined whether the entral group of values for ost an be admitted and if the dispersion field is inluded in the tolerane interval In other words, we must determine whether for the probability distribution (normal distribution) an aept the hypothesis that the parameter m o Aording to mathematial statistis suh a hypothesis is verified in two situations: A) When in previous studies we determined the value for the parameter σ of the normal law as having the value σ B) In the situation where we did not make any study and σ is unknown, in situation (A), we an apply the standard Z (or U) whih an be stated as follows: For a signifiane level q an aept the premise that m if σ / n < Z q and it rejets the opposite ase where n is the volume of seletion (number of determinations made during the statistial study), Zq is in the ondition 1 q Φ( Z q ), Φ( Z ) q the funtion was introdued into the following figure (figure 3) In situation B, we use the riterion T for a signifiane level, as follows: The hypothesis m is admitted if s / n < T q, where: n is the volume of seletion T q is determined taking into onsideration the q F( T q ) 1 ondition The funtion F (t) is presented in the following Figure 4 Where: fn-1 represent the number of the freedom degrees From these two riteria an be established if following the statistial studies arried out an be assumed that the average ost of the produt oinides with the enter of the tolerane interval

6 11166 Afr J Bus Manage Z Φ(Z) Z q Φ(Z q ) Figure 3 Normal distribution Laplae funtion t f n-1 t F(t ) Figure 4 Student distribution (T) Distribution funtion values onsidered It remains unlear if the dispersion field values for the ost are inluded in the field of tolerane allowed The dispersion field an be onsidered as the interval [ -σ, σ +σ] ( average square deviation) In situation A we an easily notied that In situation B, as σ is unknown we use the estimate of nondisplaed σ ( s) and we will onsider the dispersion field as being [ - s, σ + s], where s s assumption that σ has a ertain value field is onsidered: [ -σ, +σ] σ or we first hek the and then the dispersion The seond method is more effiient so we an see when we an σ σ admit that has value and when it does not have this value The riterion used for the verifiation of this hypothesis is the standard hi -square that states as follows: for a level of σ σ signifiane q we aept the assumption if s ( 1) n χ q σ in figure 5 ; f χ q 1 ; f, where χ p is found So if, taking into aount this riterion, we aept the assumption σ σ then we also have the dispersion field Therefore, we an onlude if the produt ost is determined orretly or if the determination is adequate RESULTS AND DISCUSSIONS We will exemplify a result of model appliation in the furniture industry The ontrol of the osts evolution over a period of n 5 onseutive time units indiate the results in Table 1 Graphially the values are represented in the (Figure 6) Therefore, the evolution of the onsidered ost follows a normal distribution We have a variable seletion for whih we obtain the average seletion: 878 The dispersion of seletion s 3 ; The dispersion of the modified seletion: 36 s, s s 57 We will first onsider that the tolerane interval is [8; 95] its entre being 875 We hek if we an admit the hypothesis that the average theoretial distribution (normal distribution) is It was established in earlier studies that the dispersion of the theoretial distribution is known and it has the valueσ 4 So we will apply the riterion Z: σ / /5 3 /5 15 n If we onsider the level of signifiane q5, then: 1 q 1,5 95 Φ( Z q ) From the table result that Z q 196 and we admit the hypothesis that the average of the theoretial distribution is m If σ is unknown (if from previous researh its value was not determined) then we an apply the riterion T s / n /5 3 57/ q,5 F( T q )

7 Pirvu et al f p p f χ p, f Figure 5 Distribution χ Table 1 Cost variation in ase study for n 5 C(t) Ni Figure 6 Cost variation in ase study for n 5 In a similar manner, we obtain from the tables that T q 19 and it is assumed in this ase that the average of the theoretial distribution is The dispersion field is [ s, + ] s, that means [81; 935] We observe that in the onsidered ase, the distribution field is inluded in the tolerane interval So we an say that the auray is adequate, but sine, the alulation of the antiipated ost is not perfet Beause the differene between the two values is small and we admit the assumption that is the average of the theoretial distribution that an reah the onlusion that even if not perfet, the antiipated alulation is right When analyzing the values obtained after the statistial study we observed that from the 5 tested values, only two values exeed the tolerane interval, so that we an onsider that the emergene of these values is fortuitous Therefore, it is not neessary to intervene in the prodution proess or modify the determinants of the prodution ost We must larify that in a new statistial study, we an analyze a period that follows this or the entire period that onsists of the analyzed period plus the next period until the ompletion of a new study In the seond ase, based on the higher number of determinations we an draw a more eloquent onlusion by using the mathematial apparatus Similarly, we an obtain results that took into aount the trend of variation and of ost evolutions in the last period whih is of ourse loser to the future Thus, if in the next period of the study, we observe a trend (inreasing or dereasing) in osts evolution and we an expet that in a not too distant future, not the same trend ours - a trend that would be somehow minimized if we take into aount an earlier period In the ase of another ompany from the furniture industry for a similar produt, the evolutions of ost during a period of 9 onseutive time units have led to

8 11168 Afr J Bus Manage Table Cost variation in ase study for n 9 C(t) n i Figure 7 Cost variation in ase study for n 9 the results in Table Graphially the respetive values are represented in the Figure 7 As an be seen, the evolution of ost follows a normal distribution Considering the variable of onsidered seletion we obtain: C s s s 61 Considering the tolerane interval [8, 9] we find that 85 so we ould say that the ost was orretly determined The dispersion interval is [ - s, + s ], that means [789; 911] whih is not inluded in the tolerane interval, so the ost alulation is not adequate aording to the definition given previously The differenes are small and they an be negleted, sine they do not influene the results of the study We point out that if one aepts the hypothesis that m, whih is true in the ase presented, and the assumption σ σ is aepted (based on hi-square test), then the dispersion field an be onsidered: [ σ, + σ ] Sine in this example, the range of dispersion is not inluded in the tolerane interval only due to the upper limit, we try to analyze whether we an use what is stated earlier Beause the range of dispersion is inluded in the σ σ 5 tolerane one, the assumption should be verified In this ase, the dispersion interval alulated using the new formula is [8, 9] whih oinides with the tolerane interval We will hek if the hypothesis is onsidered aeptable We alulate: s 37 x( n 1) x σ 5 Considering the aforesaid that q5, we have: χ q χ,5;8 ;f χ q χ,975;8 1 ;f Sine 11,84 [18;175], it follows, based on the hiσ 5 square test, that we admit the hypothesis It results thatσ 5 5 In that ase, the dispersion interval an be onsidered:

9 Pirvu et al [ σ, + σ ] [8;9], interval that is the same as the tolerane interval σ σ Sine the testing of hypothesis was performed on the basis of a fundamental sientifi riterion, we an onsider that we have obtained a proper value of the given ost Conlusions An important task of the management is to ensure the ontrol on operations, proesses, ativity setors and not, the last, on the osts Ahieving the objetives of an organization ontribute to many ontrol setors (the prodution ontrol, the quality ontrol, the stoks ontrol) but the informational system of osts is important beause it ontrol the others systems results The detailed analysis of expenses, the alulation of the prodution ost, the quantifiation of losses, the effiieny of work, offer a solid basis for the finanial ontrol The knowledge of the osts and their evolution represents an important fator regarding taking deisions or planning for future ativities The analysis and registration of data regarding the osts of the past ativity is only a part of ost aounting The managers are onerned about the osts that will appear in the future, their level being the base for some supply and prodution deisions, as well as priing poliies In these onditions, it is neessary to implement the strategi management aounting based on the tehniques that an be divided into three groups: 1) Orientation towards the internal part of the ompany underlines the olleting and reporting of relevant internal information in order to obtain effiieny as an advantage ompetitive soure and that regards: ABC, ABM and the bookkeeping assoiated with the development of the new strategies of prodution (information as quality, ost, time, related to TOM and JIT) ) Orientation towards the exterior part of the ompany it is believed that those orientations internally direted limit the ability of ompeting in an effiient way The strategi management aounting must draw the omparison between the struture of the ost and that of the ompetitors involved into a ost strategy and it also must draw the omparison between the report of the produt s qualities and the market s demands into a diversifiation strategy 3) Orientation to the future mostly used in the investment deisions, where an orientation on a long term is needed, espeially that this field was ritiized beause it moved away from the strategy Regarding the roles of the strategi management of osts, these an be followed on three oordinates: 1) Monitoring the strategy role made through instruments suh as the systems of measuring the performane (BSC or other), through ompetitor-foused aounting, taking into onsideration that the ompetitive advantage an only be reated by omparison to ompetitors ) The development of the strategy information is used to develop superior strategies with the purpose to obtain lasting ompetitive advantages, and as instruments we have the planning of the investments and the benhmarking 3) The formulation of new strategies strategi management aounting has an important role in strategi transformations, not beause of the instruments themselves, but more beause of the information and knowledge it posses In this ontext, our study provides a sientifially based tool for the ontrol of osts evolution during the prodution proess This implies the ahievement of statistial studies and omparison of results obtained following adaptation with the proposed target, represented by the level of ost that ensures a breakeven aeptable to the produt The results of studies presented in this paper show the usefulness and neessity of suh studies in making deisions, beause, the information regarding the osts is a key fator for business management Following ompletion of these ase studies we onluded that the prodution proess an be ontinued without major hanges as regards the volume and struture of prodution fators ACKNOWLEDGEMENT This work was supported by CNCSIS-UEFISCSU, projet number PNII-IDEI ode 378/8 REFERENCES Abdel-Kader M, Luther R (4) An empirial investigation of the evolution of management aounting praties Working paper, No 4/6, Otober Albu N, Albu C (3) Instrumente de management al performantei Ed Eonomia, Buuresti pp 79-91, Bouquin H (6) Comptabilite de gestion, 4-e edition Ed Eonomia, Paris pp Burlaud A, Simon CJ (1999) Comptabilite de gestion-couts-contrôle Vuibert, Paris pp Dubrulle L () Contabilitate de gestiune Ed Eonomia, Buuresti Diaonu P, Albu N, Mihai S, Albu C, Guinea F (3) Contabilitate manageriala aprofundata Ed Eonomia, Buuresti Hohmann Ch (4) Le onept de haine de valeur, URL: Ittner CD, Larker DF (1) Assessing empirial researh in

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