The Impact of Depreciation on Costs

It is known that depreciation is calculated in financial accounting by regulated criteria, depending on a conventional fixed life. Excluding depreciation depending on units produced (applied to buildings and special construction of mines, salt mines, quarries) where it is calculated per unit based on the exploitable reserve of useful mineral substance, the other depreciation methods do not always lead to fair and justified calculation of production costs. In this paper I will show how to record depreciation expenses in management accounting in Romania, the influence of methods of depreciation on costs, which are the restatements that depreciation expenses should be subject to for an accurate determination of production costs.