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Cost Center Practices in Germany and the United States: Impact of Country Differences on Managerial Accounting Practices

Cost Center Practices in Germany and the United States: Impact of Country Differences on... As business becomes increasingly global, it is important for managers to appreciate that practices that work well in one country may not work as well in other countries. This article compares cost center practices under Grenzplankostenrechnung (GPK), a common approach to cost accounting in Germany, and typical cost center practices in the United States. Differences between Germany and the United States on Hofstede’s uncertainty avoidance dimension and in workforce and management education provide possible explanations for differences in the responsibility assigned to cost center managers between Germany and the United States. Differences in cost center practices concerning classification of costs, measures to use when considering changes in costs, and the size and scope of the cost center between Germany and the United States all support these differences in cost center manager responsibility. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Business Emerald Publishing

Cost Center Practices in Germany and the United States: Impact of Country Differences on Managerial Accounting Practices

American Journal of Business , Volume 25 (1): 8 – Jan 1, 2010

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References (7)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1935-5181
DOI
10.1108/19355181201000004
Publisher site
See Article on Publisher Site

Abstract

As business becomes increasingly global, it is important for managers to appreciate that practices that work well in one country may not work as well in other countries. This article compares cost center practices under Grenzplankostenrechnung (GPK), a common approach to cost accounting in Germany, and typical cost center practices in the United States. Differences between Germany and the United States on Hofstede’s uncertainty avoidance dimension and in workforce and management education provide possible explanations for differences in the responsibility assigned to cost center managers between Germany and the United States. Differences in cost center practices concerning classification of costs, measures to use when considering changes in costs, and the size and scope of the cost center between Germany and the United States all support these differences in cost center manager responsibility.

Journal

American Journal of BusinessEmerald Publishing

Published: Jan 1, 2010

Keywords: Cost centers; German cost accounting; Hofstede; Responsibility accounting

There are no references for this article.