Český finanční a účetní časopis 2006(1):99-106 | DOI: 10.18267/j.cfuc.130

The Functional Classification of Costs and the Ascertainment of the Top Performance Criterion for the Management

Bohuslava Knapová

Ing. Bohuslava Knapová, CSc. - odborná asistentka; Katedra manažerského účetnictví, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <knapova@vse.cz>.

Costs for management follow the purpose of the expenditure of economic resources on the output, the centre, the activity and the adequacy of their expenditure to this purpose. The economy management of costs is a component of the operative management in conditions of existing capacities which enable to prepare the output for a customer on the market. The important place of the informative ensuring of the operative management is the finding out of real costs, incomes, profit etc. and their comparison with in advance determined, planned values. The analysis and the management of variances according to causes of the rise and responsibility for their rise is the basis of accounting information for the management of the entrepreneurial company. The top budget criterion is shown in budgetary income statement which uses the functional classification of costs together with some other classifications of costs. The top performance criterion is the result of the synergic action of the efficiency and economy management, it represents the profit from the sale modified about economy results of centres in management accounting.

Keywords: Functional classification of costs; Top performance criterion; Efficiency and economy.

JEL classification: M41

Published: March 1, 2006  Show citation