FLEXIBLE VARIABLE COST BUDGETING OF METALLURGICAL PRODUCTION

1 KUTÁČ Josef
Co-authors:
2 BESTA Petr 1 KUTÁČ Tomáš 1 ŠVECOVÁ Eva
Institutions:
1 VŠB – Technical University of Ostrava, Ostrava - Poruba, Czech republic, EU, josef.kutac@vsb.cz, tomas.kutac@vsb.cz, eva.svecova@vsb.cz
2 University of Entrepreneurship and Law, Michálkovická 1810, Ostrava, Czech Republic, EU, petr.besta@vspp.cz
Conference:
26th International Conference on Metallurgy and Materials, Hotel Voronez I, Brno, Czech Republic, EU, May 24th - 26th 2017
Proceedings:
Proceedings 26th International Conference on Metallurgy and Materials
Pages:
2232-2235
ISBN:
978-80-87294-79-6
ISSN:
2694-9296
Published:
9th January 2018
Proceedings of the conference were published in Web of Science and Scopus.
Metrics:
121 views / 32 downloads
Abstract

This article focuses on the flexible variable cost budgeting of metallurgical production and its usage for valuation of actual variable cost. In case that this flexible budget is not available, it is not possible to identify the main influences that affect the total differences between the planned and actual values of variable cost. These main influences are: influence of production volume, influence of product mix, influence of consumption of variable inputs and influence of price of variable inputs. This article defines the procedure how to calculate the flexible budget of overhead variable cost based on its average planned consumption and prices. Part of this article is also a definition of the calculation of main influences that cause differences between the budget of variable cost and its actual value.

Keywords: Variable Cost; Flexible Budgeting; Metallurgical Production; Product Mix; Company Plans; BOM.

© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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