Full costs

In business cost accounting, full costs are composed of the direct costs and the overheads .

General

Full costs are an important calculation basis . The entrepreneurial calculation on the basis of full costs is often an expression of business ethics notions of a fair price , which, in addition to a profit premium, should cover the manufacturer's expenses and secure his existence. Full cost coverage means that there is a cost coverage level of 100% of the proceeds. Full costs are therefore all costs incurred in a company, regardless of how closely they are related to production and the operational purpose .

detection

There are two ways of determining the full costs.

Assignment to the insurance provider

The direct costs can be assigned directly to a cost unit, while the overhead costs can only be allocated indirectly using the distribution key. Direct costs are, for example, the raw materials used directly for a product , overhead costs, for example, the salaries of the administration.

Employment-related or non- employment- related costs

The costs arising from production-related utilization are called variable costs , while the rest of the so-called standby costs are the fixed costs . The former include manufacturing wages for workers and the latter include insurance premiums to be paid for business insurance .

composition

The full costs ( ) are made up of the fixed ( ) and variable costs ( ). Another perspective is the division of the full costs into direct costs ( ) and overhead costs ( ): ${\displaystyle V}$ ${\displaystyle K_{\text{f}}}$ ${\displaystyle K_{\text{v}}}$ ${\displaystyle K_{\text{e}}}$ ${\displaystyle K_{\text{g}}}$

${\displaystyle V=K_{\text{f}}+K_{\text{v}}}$

${\displaystyle V=K_{\text{e}}+K_{\text{g}}}$

Hence:

${\displaystyle K_{\text{f}}+K_{\text{v}}=K_{\text{e}}+K_{\text{g}}}$

In full cost accounting , all costs are finally offset against the cost unit via cost type accounting through cost center accounting . The full cost calculation makes sense, because information and incentive problems can lead to wrong investment decisions in the long term if not all costs of a decision (fixed and variable costs) are taken into account.

Full costs and jurisdiction

The case law has also dealt with questions of full costs. The Reichsgericht had still - at least in times of war - assumed the full costs and a profit surcharge when determining a reasonable price . The Federal Court of Justice , however, fails to use the full cost model when determining the infringer's profit, but only approves part of the overhead costs (only variable overhead costs with a direct relationship to the service provided) and all individual costs. Fixed costs that would have been incurred as pure standby costs “anyway” may not be taken into account. The judgment had only become possible since the partial cost accounting had prevailed in business administration .

Individual evidence

1. ↑ Klaus-Peter Kistner / Marion Steven, Business Administration in Basic Studies 2 , 1997, p. 171
2. ↑ Armin Hegelheimer, Wirtschaftslenken und Preisintervention , 1969, p. 123
3. ↑ ^{a b} BGH GRUR 2001, 329, 331 "Overhead judgment"