Original scientific paper
Autor: Prof. dr Živan Nikolić, Prof. dr Predrag Marjanović
JEL: M41, D24
Summary: The essence of this work is a critical evaluation of theoretical concepts on the behaviour of total costs in respect to changes in the activities volume from the aspect of the possible applications in the accounting practice. The work is primarily designed to offer an overview of the necessary restrictions to the theoretical-dynamic model on the behaviour of costs for the needs to a short-term costs management within the relevant volume of activities. The paper also offers a discussion on the need to make differentiation and allocation of fixed and variable costs into causes of their generation in the management accounting systems. To the extent that was necessary a theoretic survey was given of the teachings on the costs reagibility, as a part of the methodology for classifying costs into the fixed and variable component. Finally, the work offers explanations on the possible sources of errors in differentiation of costs through critical assessment of the operative methods that are being applied in practice.
Key words: total costs, fixed costs, variable costs, mixed costs, and relevant scope of activities volume