Accounting Information for Product Costing - Case Study

Cost management is a process that requires continuous improvement of managers' knowledge. There is economic theory of costs and revenues. However, in practice managers rely on accounting data in making business decisions. The main problem is that economists and accountants do not see the costs the same way. In this paper we explain the difference between the teachings of economic theory and its practical application in the accounting practices. We show how economic theory can be applied in practice and be a useful tool in the hands of managers. For the case study we use recent accounting data of a transport company.