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USING CALCULATIONS IN BUSINESS ENTITIES IN HISTORICAL CONTEXT
Abstract
One of the basic needs of every enterprise is the identification of costs related to business activities. The fundamental tool for evaluating the costs of the enterprise is costing, which is among other things of particular importance particularly for businesses selling their performance externally. Costing allows assessing the profitability performance, which is one of the basic prerequisites of the company's success. Selecting the type of costing is essential for obtaining relevant information on the costs of the company's products and services. A basic overview of the different costing approaches and their impact on the profitability of products and services as well as the overall impact on profit of the company was created, based on searches of professional resources. Using a questionnaire survey, data on the use of various types of calculations in business entities in the Czech Republic were obtained. The data were compared with results of comparable research conducted in 2008. This comparison was the basis for drawing conclusions whether enterprises accept modern methods of managing costs, or whether the enterprises still use mainly the absorption costing. On one hand, however, this costing includes all costs of the enterprise; on the other hand it can be considered not always a satisfactory and sufficient method that was used in the Czech Republic at the time, when creation of calculations and prices was under central control. Absorption costing has many limitations, its principal drawback is the static explanatory power – it refers to a specific amount and structure of performances. When changing volume and range of performances it ceases to perform its function. From the perspective of the constantly changing market conditions, companies should rely on the use of not only this costing, which can be a source of getting distorted information about the costs of the enterprises and the profitability of the performances and can lead to incorrect decisions of the company management.
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