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Dairy Industry

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Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 2/2013

IMPROVING MANAGEMENT ACCOUNTING AND COST CALCULATION IN DAIRY INDUSTRY USING STANDARD COST METHOD Bogdănoiu, Cristiana-Luminiţa Assistant, Ph.D. Student Spiru Haret University, Faculty of Financial Accounting Management Craiova and University of Craiova, Faculty of Economics and Business Administration, Craiova e-mail: cristiana.bogdanoiu@yahoo.com

Abstract This paper aims to discuss issues related to the improvement of management accounting in the dairy industry by implementing standard cost method. The methods used today do not provide informational satisfaction to managers in order to conduct effectively production activities, which is why we attempted the standard cost method, it responding to the managers needs to obtain the efficiency of production, and all economic entities. The method allows an operative control of how they consume manpower and material resources by pursuing distinct, permanent and complete deviations during the activity and not at the end of the reporting period. Successful implementation of the standard method depends on the accuracy by which standards are developed and promotes consistently anticipated calculation of production costs as well as determination, tracking and controlling deviations from them, leads to increased practical value of accounting information and business improvement. Key words: standard cost method, calculation, deviations, effective costs, standard costs. JEL Classification: M40, M41

Introduction The main objective of the development and diversification of the costing methods in the dairy industry is to make them more operational and effective in providing the necessary information for management decision making. Actual costing method practiced in dairy industry enterprises, does not provide to management fully satisfaction

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