Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science


DOI: 10.5937/jaes14-10895
This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions. 
Creative Commons License

Volume 14 article 389 pages: 351-360

Novak Petr
Tomas Bata University in Zlin, Faculty of Management and Economics, Mostni 5139, Zlin, Czech Republic

Papadaki Sarka
Tomas Bata University in Zlin, Faculty of Management and Economics, Mostni 5139, Zlin, Czech Republic

Hrabec Dusan
Tomas Bata University in Zlin, Faculty of Management and Economics, Mostni 5139, Zlin, Czech Republic

Popesko Boris
Tomas Bata University in Zlin, Faculty of Management and Economics, Mostni 5139, Zlin, Czech Republic

The aim of the paper is to compare the principles, information outputs and consequent managerial implications of the variable costing method and throughput accounting, according to their different perceptions of cost variability. These two approaches could give rise to various product mix decisions and findings relating to effect on profitability. The paper also provides a practical example of limitations experienced on two production lines for certain items. Comparison is made between these two approaches as to which elicits a relevant decision on production mix. Both the variable costing method and throughput accounting represent very similar methods based on variable costs that do not reflect fixed costs. Variable costing methods examine costs that change in accordance with volume of output. On the contrary, throughput accounting merely acknowledges total variable costs, and focuses on limitations which exist in a given company.

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This paper is one of the research outputs of the project GA 14-21654P/P403 .Variability of cost groups and its projection in the costing system in manufacturing enterprises. registered at the Czech Science Foundation.

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