Analyzing Costs and Making Decisions by Using the Standard Cost Method within the Enterprises Operating in the Treatment and Coating Metals Industry

The enforcement of the standard cost method involves the following aspects: on the one hand, making the calculations of the standard costs for the products which will be manufactured in the following year, while on the other hand calculating, monitoring and controlling the deviations from the standard costs – these being the most important actions. Not least, it is also important to monitor the costs according to the requirements in the field. Carrying out an analysis process of the costs involves, first of all, determining the necessary data and providing it to the analysis instruments. The data related to the consumption of resources, energy, plants and equipment, as well as to the technological control (and others) must be available for a comparative analysis between the costs of the basic production and the alternative ones proposed. Once this data is determined, the direct and indirect cost are calculated, being followed by the actual analysis. The use of an adequate method for calculating costs involves for the project team to select the long-term financial indicators which explain the cash flows necessary to the activity of an organization, by using some analysis instruments enforceable to typical information. Therefore, our aim is to get to know the content of the method discussed here, the possibility to apply it in a certain field and, not in the least, to elaborate some thoughts on the scope of the chosen method.