FINANCIAL MODELING THROUGH THE COSTS WITHIN THE COMPANY’S MANAGEMENT

Abstract

Knowledge of the production costs in all its theoretical and practical complexity, as resulted from the research of the foreign literature, is a basic tool within reach for the entity’s management and is used to increase business efficiency. The study of cost aims at solving the complex cost production issues in different aspects, both microeconomic and macroeconomic; at a microeconomic level are solved the costs problems of an economic unit, the object being represented by an order, a production phase, an activity center, a product for which is carried out theoretical and practical research of the phenomenon, the study of the causes that have generated it, growth and forecasting of the activity, and depending on the particularities of the production process is carried out the calculation of the production cost.