The role of costing in the managing activity of the economic entity

Abstract

Cost calculation is simultaneously delimited as an information tool (produces and provides cost and profit information) and as a management tool to improve the performance of the economic entity, while also representing a decision-making technique for maximizing profitability. The information produced and managed by the cost calculation is intended for the entrepreneur (the manager, the administrator) as an internal beneficiary who, in his capacity as manager, has to solve problems of allocation and use of resources entrusted externally (by the investor) to build performance. This information provided by the cost calculation allow managers to assess the viability of alternative business strategies, to choose between alternative decisions and to assess the results of business segments. JEL: M 41, M 21