ANALYSIS OF INDIRECT EXPENSES RATES

The requirements of management work determine the functions, objectives and methods of the cost information system. In turn, these elements (functions, objectives, methods) generate the informational structure for presenting the respective elements. Indirect expenses contribute adjacent to the suppo...

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Bibliographic Details
Main Author: Daniela SIMTION
Format: Article
Language:English
Published: University of Agricultural Sciences and Veterinary Medicine, Bucharest 2021-01-01
Series:Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development
Online Access:https://managementjournal.usamv.ro/pdf/vol.21_4/Art59.pdf
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Summary:The requirements of management work determine the functions, objectives and methods of the cost information system. In turn, these elements (functions, objectives, methods) generate the informational structure for presenting the respective elements. Indirect expenses contribute adjacent to the support of current activities. In general, these expenses are not easily identified when manufacturing a product, providing direct services or meeting the direct requirements of a project. Instead, indirect expenses are accrued in detailed accounting records, allocated and reported by each firm. The expenses are then cumulated in centralized documents at departments level (production, quality assurance, administrative, sales, research and development) according to the organizational requirements. Their analysis can help us assess indirect spendings and control excessive spending. The key factors in monitoring these expenses are continuous surveillance, control measures and performance measurement.
ISSN:2284-7995
2285-3952