Open Access Journal

Manuscript submission

Volume 60 (2009), issue 2

Utilization of contribution margin in the costing system in production of components for wood working machines

Research subject and fields:

The aim of this paper is to propose optimization of costing method for planning a production-sales programme of the chosen engineering enterprise dealing with the production of components for wood working machines. This engineering company uses the calculation pattern methodology in the comprehensive cost accounting system. All costs components are absorbed by individual outputs in this cost calculation. The results of this calculation are not available for decision-making tasks. In order to solve the decision tasks relating to output assortment optimization, it is necessary to show separately variable costs influenced by changes in production volume and fixed costs not influenced by changes in production volume. For these reasons we propose a specific application of retrograde costing as a necessary condition for effective system of decision-making on the basis of contribution margin calculation. The contribution margin/standard hour is the criteria for the calculation in a critical place of production and this is very important information for developing an optimal production-sales programme.


Faculty of Forestry and Wood Technology

DRVNA INDUSTRIJA Scientific Journal of Wood Technology

ISSN 0012-6772 (Print) / ISSN 1847-1153 (Online)

Faculty of Forestry and Wood Technology University of Zagreb, Svetošimunska 25, 10000 Zagreb, Hrvatska - Croatia
Tel: +3851 2352 430, E-mail:
Editor-in-Chief: Prof. Ružica Beljo-Lučić, Ph.D. E-mail:
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