Cost Accounting in Germany.

Abstract The article focuses on cost accounting in Germany. The author has presented the defined principles and objectives of German accounting, together with a uniform accounting plan in one of his articles. The Board of Industrial Economy has continued its work with regard to improvement in all fields of accounting. The purpose of these "General Principles of Cost Accounting" is to assist in achieving increased economy in production, for it is believed that a cost-accounting system based upon these principles will lead to a correct ascertainment and clear conception of all costs involved. Such a system will promote cost supervision, estimate, price determination and cost comparison within the plant or within the industrial group. All these steps will contribute to the final goal: increased economy and greater performance in business and industry. The performance of a business is definitely determined by its costs. The influence, which a profound knowledge of costs will have upon the formation of prices within an enterprise must further-more result in cleaner conduct among competitors.