IMPROVEMENTS IN EXTERNAL REPORTING BY USE OF DIRECT COSTING.
This article focuses on improvements in external reporting by use of direct costing. Financial statements are the final product of the accountant's efforts, and the effectiveness of the accounting profession may be measured by the adequacy with which these statements reflect a company's financial position and the results of a given period's operations. The need for adequate and informative financial statements has become accentuated by the rapidly changing value of the dollar, fluctuations in the economic pulse of the economy, rising tax rates, and widespread corporate ownership. The direct costing concept should not be confused with techniques such as marginal costing and differential costing. Marginal and differential costing, as commonly defined, are techniques primarily concerned with cost differences, such as the cost to manufacture a product at one level of activity as compared with the cost to manufacture the product at some other level of activity. Direct costing is a means of reporting on the overall effectiveness of a company's operations.
- DOI
- 10.2308/tar-7131109
- Volume
- 34 (1)
- Pages
- 59-66
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref