Exploring the effects of firm and product characteristics on cost system’s features
The present study examines the associations between the various factors which are related to the process of assigning the production cost (direct and mainly indirect) to different cost objects. In particular, the focus is on detecting the relationship between the costing choices used, which specify the implementation of the costing process in practice, with the main characteristics of the firm and the products produced.The results suggest that, in Greece, the implementation of the costing process takes place in rather traditional contexts, maintaining a relatively modest, in complexity, costing system. The differences found in the cost structure and the characteristics of the products are not expected to cause significant difficulties in the cost allocation and the assignment process.As expected, a positive correlation has been found between the size of the firm and the level of detailed recording of costing related information.The argument that the diversification of the production process, as determined by the large number of products being produced, creates a need for more accurate and detailed cost recording system is also supported.Finally, findings suggest that there is a negative correlation between the use of different allocation methods’, for both internal and external accounting reports.