Recommendation on the design of cost accounting policy in Germany

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In cost accounting policy the basic components of cost accounting to be regulated. However, the directive is not binding. Rather, it should serve as a guiding-thread, to provide for the introduction of cost accounting a framework available within which the detailed design of cost and performance statement is made by the community itself. 

 

Therefore, the Directive also omitted final formulations. Although individual, used in the policy text terms are explained briefly in the Annex to the Directive, the Directive nevertheless does not replace the need for the introduction of cost accounting staff training.


As to the precise timing of the introduction of cost accounting makes the Directive with no requirements. The new municipal budget law is in force from 01 January 2007, by resolution of the council no later than January 01, 2009. These periods are equally applicable to the introduction of a cost accounting. A transition period, after which the cost and management accounting is set up in time after the introduction of double-entry accounting system, was not considered useful. 

 

The cost accounting is an important basis for the allocation of expenses and income on the part of households and the partial income. For the design of external accounting, it is important to first know the cost structures of the respective municipality. Therefore, it is useful to establish the cost and management accounting before or at the same time and in coordination with the Doppik municipal and introduce the latest with the local double-entry bookkeeping.

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