Analysis of The Application of Mathematical Methods in the Cost By Absorption in the Customization of the Cost of Joint Products In A Moe Industry: A Management Contribution
Journal Title: International Journal of Engineering and Science Invention - Year 2017, Vol 6, Issue 7
Abstract
The present case study has as objective to analyze the application of mathematical methods in the absorption costing in the calculation of the cost of joint products in a milling industry. It presents the attribution to the products of the joint costs based on the criteria: by revenue, net realizable value, unit gross profit equality, percentage gross profit equality, profitability equality and physical units. Refers to an applied, quantitative, descriptive approach, with data collected in a documentary form. It demonstrates the comparison of the applied criteria, evidencing that each mathematical method used presents different net results for the company, even negative. It emphasizes that the analyzes of productive costs can bring important management information to the company, since the established allocation criterion directly interferes with profitability and can lead the company manager to make improper decisions regarding some products that apparently can Opinion does not contribute to the positive outcome of the business institution. Thus, the importance of strategic cost management in industries, as an aid and decision-making tool and the respective model reflexes and mathematical criteria, is highlighted.
Authors and Affiliations
Prof. Dr. Luciano Bendlin, Prof. Eduardo Gomes, Prof. João de Lima, Profa. Katia Vichineski
Keywords
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