The Impact of the choice of Method of Measuring the Cost of Production on the Process of Taxation

Reda H. Soud, Abdul

	The Impact of the choice of Method of Measuring the Cost of Production on the Process of Taxation
Managerial Studies Journal
Article 1, Volume 7, Issue 14, 2015, Pages 228-250 PDF (0 K)
Author
Abdul Reda H. Soud
Abstract
The accounting in come considered the basis, for the process of taxation and there fore all effecton the accounting in come result will affect the so-called potted tax, which is the out put importantly in the process of taxation, from here was the legislator taxation important role is to intervene to reduce the diligence and judgment, there fore ,the main aim of this research is to demon strate the impact of choosing a particular method of measuring production costs on income tax, which was addressed to the methods of measuring the cost of production and determine the variable factor between these methods and then connect it taxation in Iraq, through a review of theoretical process of taxation and application adoption each method from the three known methods (Full costing, Variable costing, Utilized Capacity Costing) on data of particular company for a period of five years for the purpose of the demonstrate of the impact of the choice of method with out the other. The research found that although the impact of the use of the method without the other depends on the volume of the inventory at the end of period of the finished goods and work in process though the effect is going on from year to year, but could allow avoidance of tax in certain cases, although the legislator tax should have a role required a certain method and not change them for accounts that can be adopted to the process of taxation.
Keywords
Cost; Production; Taxation

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