Horizontal and longitudinal Convenient Analysis between Full-Cost Method and Variable Cost Method
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DOI: 10.25236/ssehr.2018.166
Author(s)
Liu Zhiying, Liu Donghui, Tian Yulan
Corresponding Author
Liu Zhiying
Abstract
The transformation of financial accounting to management accounting means a special requirement for the development of social economy to post-industrial period, also an inevitable result of the development of computer technology. Under the background of the widespread application of big data and cloud computing, China has entered the era of data economy. How should accounting provide better driving force for economic development is an important issue to be solved in current accounting reform. Management accounting framework research and system construction have already been proposed in the policy level, so management accounting method, and research with variable cost method as the core should also keep pace with the times. The purpose of this paper is to provide a way to integrate management accounting with financial accounting. The results corresponding to the two analysis methods are obtained via case design and comparative analysis. Finally, it is concluded that the two methods can be mutually converted by certain rule.
Keywords
Variable Cost Method, Full Cost Method, Model, Transformation