The three-stage evolution of full cost accounting in business economics

Abstract

This paper analyzes the evolution of the concept and usage of full cost configurations in European and north-American enterprises by examining three different periods: The old period, characterized by a "traditional approach" beginning at the end of the nighteenth century and finishing in the 1970s; the transactional period that began in the 1970s and continued until the end of 1980, and the modern period that is still in progress. The research, developed with a quality Contingency theory approach, proposes a model for understanding the change in cost accounting and analysis, in particular regarding the role of overheads. © 2010 Springer-Verlag Berlin Heidelberg.