Original scientific paper
COMPARATION OF PRODUCTION AND SERVICE COSTS IN CROATIA AND COST REDUCTION MEASURES
Ivana Perica
orcid.org/0000-0001-8395-5096
; University of Split, Faculty of Economics, Split
Abstract
Creating a product or service is carried out by the joint efforts of materials, labour and property and equipment. These elements are consumed in the business process, and therefore recognized in accounting system and financial statement as cost items. In order to achieve optimal balance between cost and revenues and consequently the best financial results it is necessary to manage cost. The knowledge of costs structure should constitute the starting point for any cost management activities. The aim of this paper is to identify and analyze the cost structure of production and service industry examples in Croatia. The study was conducted on a sample of 8,913 active companies operating in the sector of food and drinks production and intellectual services in Croatia. The results point to differences in the cost structure that have served as a base for proposed cost reduction measures for each of the analyzed industries.
Keywords
costs reduction; production industry; service industry
Hrčak ID:
194706
URI
Publication date:
30.6.2017.
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