THE IMPACT OF COSTING METHODS ON PROFITABILITY OF ENTERPRISES OPERATING IN THE EMBROIDERY INDUSTRY

Authors : Marius Darius Șuteu, Liana-eugenia Meșter, Nicoleta-georgeta Bugnar, Nicoletaalina Andreescu, Dana Maria Petrica

Pages : 239-243

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Publication Date : 2016-09-30

Article Type : Research

Abstract :Determining the optimum operating mode of the equipment is a necessary condition but not sufficient in order to maximize the  profit. The present study aims at identifying a method for making efficient the economic activity, starting from the optimum operating  mode of the equipment, which has been the subject of a previous study. The results of the studies performed on Happy embroidery  machine led us to the need to identify a method of cost calculation allowing a proper allocation of costs on the product. The method  proposed to be used allows that all activities needed for making a product could be identified and the afferent expenses for their  implementation can be calculated and predicted with a greater accuracy than by using traditional methods of cost measurement. The  ABC (Activity Based Costing) method implies the calculation method and the cost analysis, but can also be seen as a tool to measure the  company performance.
Keywords : Cost optimization, Activity Based Costing method, monitoring costs, profit, product