SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR

Knowing the costs of some activity is essential to a financial manager. Within costs it is important to group them into variable costs and fixed costs. The operation of an enterprise generates costs that with the help of the accounting records fail to group costs into the two large categories and a...

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Autores principales:	Árpád-Zoltán Fülöp, Kinga-Erzsébet Bakó, Alina Stanciu
Formato:	article
Lenguaje:	DE EN FR IT
Publicado:	University of Oradea 2021
Materias:	variable cost, mixed cost, least-squares method Business HF5001-6182 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/2bbd3203dac0475284b6f3f9ea7ce405
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spelling	oai:doaj.org-article:2bbd3203dac0475284b6f3f9ea7ce4052021-11-09T19:45:20ZSEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR1222-569X1582-5450https://doaj.org/article/2bbd3203dac0475284b6f3f9ea7ce4052021-07-01T00:00:00Zhttp://anale.steconomiceuoradea.ro/volume/2021/n1/024.pdfhttps://doaj.org/toc/1222-569Xhttps://doaj.org/toc/1582-5450Knowing the costs of some activity is essential to a financial manager. Within costs it is important to group them into variable costs and fixed costs. The operation of an enterprise generates costs that with the help of the accounting records fail to group costs into the two large categories and a third category of costs arises, namely mixed costs. Mixed costs contain both fixed and variable costs and can only be separated by statistical methods. With the least-squares method, we can make this separation of mixed costs, respecting the conditions imposed by a statistical analysis. Very many use this method without analyzing the parametricity of the data, and the results obtained are of poor quality. In this article we have reviewed the literature on variable, mixed and fixed costs and the statistical model applied. In the research we applied the least-squares regression analysis to the water and sewage operator in Harghita County for the water activity for 2020 and 2019, comparing the results over the two years. The results were also verified with the help of the IBM SPSS analysis program. The conclusion we have reached is that the method of the least-squares is very well applicable for the separation of mixed costs if the data collected at the accounting level are parametric as happens at the regional water operator Harviz S. A., where at the accounting level fixed, mixed and variable production costs are analytically highlighted. The decisions made on the basis of these costs are relevant and enable the undertaking to make the right decisions knowing its break-even point and the fixed costs it can incur. Decisions are also relieved by the fact that fixed costs are highlighted in the two subcategories, namely: short-term fixed costs and long-term fixed costs. As a final conclusion, the decrease in production caused by the reduction in consumption in 2020 did not substantially change the variable costs separated from the mixed costs, so the method used provides support for correct decisions.Árpád-Zoltán FülöpKinga-Erzsébet BakóAlina StanciuUniversity of Oradeaarticlevariable cost, mixed cost, least-squares methodBusinessHF5001-6182FinanceHG1-9999DEENFRITAnnals of the University of Oradea: Economic Science, Vol 30, Iss 1, Pp 220-226 (2021)
institution	DOAJ
collection	DOAJ
language	DE EN FR IT
topic	variable cost, mixed cost, least-squares method Business HF5001-6182 Finance HG1-9999
spellingShingle	variable cost, mixed cost, least-squares method Business HF5001-6182 Finance HG1-9999 Árpád-Zoltán Fülöp Kinga-Erzsébet Bakó Alina Stanciu SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR
description	Knowing the costs of some activity is essential to a financial manager. Within costs it is important to group them into variable costs and fixed costs. The operation of an enterprise generates costs that with the help of the accounting records fail to group costs into the two large categories and a third category of costs arises, namely mixed costs. Mixed costs contain both fixed and variable costs and can only be separated by statistical methods. With the least-squares method, we can make this separation of mixed costs, respecting the conditions imposed by a statistical analysis. Very many use this method without analyzing the parametricity of the data, and the results obtained are of poor quality. In this article we have reviewed the literature on variable, mixed and fixed costs and the statistical model applied. In the research we applied the least-squares regression analysis to the water and sewage operator in Harghita County for the water activity for 2020 and 2019, comparing the results over the two years. The results were also verified with the help of the IBM SPSS analysis program. The conclusion we have reached is that the method of the least-squares is very well applicable for the separation of mixed costs if the data collected at the accounting level are parametric as happens at the regional water operator Harviz S. A., where at the accounting level fixed, mixed and variable production costs are analytically highlighted. The decisions made on the basis of these costs are relevant and enable the undertaking to make the right decisions knowing its break-even point and the fixed costs it can incur. Decisions are also relieved by the fact that fixed costs are highlighted in the two subcategories, namely: short-term fixed costs and long-term fixed costs. As a final conclusion, the decrease in production caused by the reduction in consumption in 2020 did not substantially change the variable costs separated from the mixed costs, so the method used provides support for correct decisions.
format	article
author	Árpád-Zoltán Fülöp Kinga-Erzsébet Bakó Alina Stanciu
author_facet	Árpád-Zoltán Fülöp Kinga-Erzsébet Bakó Alina Stanciu
author_sort	Árpád-Zoltán Fülöp
title	SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR
title_short	SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR
title_full	SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR
title_fullStr	SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR
title_full_unstemmed	SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR
title_sort	separation of fixed and variable costs from mixed costs at a water and sewerage operator
publisher	University of Oradea
publishDate	2021
url	https://doaj.org/article/2bbd3203dac0475284b6f3f9ea7ce405
work_keys_str_mv	AT arpadzoltanfulop separationoffixedandvariablecostsfrommixedcostsatawaterandsewerageoperator AT kingaerzsebetbako separationoffixedandvariablecostsfrommixedcostsatawaterandsewerageoperator AT alinastanciu separationoffixedandvariablecostsfrommixedcostsatawaterandsewerageoperator
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SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR

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