Cost and revenue analysis appropriate for the purposes of operational decisions

Ahmed Salar Mohammed, Geoar; Hashem Mohammed, Hazem

	Cost and revenue analysis appropriate for the purposes of operational decisions
Tikrit Journal For Administration & Economics Sciences
Article 1, Volume 9, Issue 29, 2013, Pages 232-249
Authors
Geoar Ahmed Salar Mohammed; Hazem Hashem Mohammed
Abstract
Abstract The work of industrial companies management (including the company's research sample) requires to take a series of decisions non-conventional and related activity, the current (operational), such as acceptance or rejection of orders for or allocation of production factors of production limited or rare or maintain a product or a specific department or stop its production or ruled out, and cannot carry out trade-offs between decision alternatives without relying on the analysis of costs depending on being a relevant and irrelevant and without a process of analysis of the differential revenues and costs , This has been proven through the theoretical side, which was devoted to the definition of the concept of costs relevant and irrelevant and the importance of separation between them for the purposes of decision-making in addition to the applied or practical (using the data contained in the financial statements of the company sample) was reached on the results support what has been put in hypothesis about the importance of the division of costs as being relevant and irrelevant and that the adoption of any method, or only entrance to it could lead to reach the results are misleading and improper.

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