The Accounting Review Vol. 29 No. 1 1954
DIRECT COSTING--THE CASE 'FOR'
Abstract
The major arguments in favor of direct costing are (1) it imposes a more realistic approach to the analysis of joint costs, (2) it permits the allocation of costs on a temporal basis if temporal significance outweighs product significance, (3) it enables the allocation of costs according to lines of responsibility for them, and (4) it possesses a number of advantages which stem from its simplification of computation. Finally, direct costing shifts the reflection of costs in the formal records from the expression of a relatively useless inventory valuation to the analysis of costs according to their applicability to periods or lines of activity.
- DOI
- 10.2308/tar-7129462
- Volume
- 29
- Issue
- 1
- Pages
- 89-93
- Language
- en
- Sources
- openalex crossref