ESTABLISHING NORMS AND ESTIMATES OF PRODUCTION COSTS IN MANAGEMENT ACCOUNTING

Abstract

The goal of business administrators is to maximize profits in production and business activities. To achieve this goal, business administrators must manage and control the input and output costs of each activity occured in the business. One of the bases for cost control is cost estimation. Cost estimates help managers plan business strategies before entering into business operations. Once the goals have been established, managers will be able to evaluate results of implementation with the set plan and control the generation of resources in the business. Within scope of this article, the author is interested in making production estimates and  establishing standard cost norms. This is an important basis for administrators to monitor the implementation of   production expenditure estimates of enterprises.