ANALYSIS AND PROGNOSIS OF COSTS - SUPPORT IN MAKING DECISIONS

Estimating the production costs constitutes one of the main problems in making decisions for a company, the information regarding the costs being the first to be considered in the decision making process. An estimation of the costs is necessary both for short and long term company strategies. Therefore, on a short term basis, cost estimations are necessary for the decisions regarding the growth of the offer volume towards the maximum production capacity. On a long term basis, decisions based on cost estimation are the ones regarding the extension and restriction of the company’s size, taking into account the corresponding optimal production. The model presented in this study is based on the method of the littlest squares, a method used in the prognosis of economic processes. It was implemented in three companies which unfold their activity within the framework of three different industries, thus verifying its functionality.