Computation and analysis of deviations from cost reports

Cost calculation proves to be a management tool that has become indispensable for any type of organization, but especially those in industrial production. Thus, to cope with the market economy, companies must organize cost calculation showing primarily the consumption of resources, but providing information outlining the inadequacies of conducting production activities. In this regard use of a standard cost calculation allows company management to identify, monitor and report deviations from standard design and can make decisions based information for efficient production flow.