Joint production and management decision making: Tropical timber export company case

摘要

abstract_textpThis paper briefly illustrates main activities of the native tropical timber production in the forest products export company and examines joint costs allocations methods in these processes. There are long boards without defects as a primary product and short boards as well without defects as secondary products because its consumption is designated for another kind of customer. It is classified as a joint production for the reason that these products proceed from the same costs until separation point. In order to assist foreign trade executives in their decision making this paper's objective is to analyze allocation methods for the products which costs are not possible to be separated. A proposal suggests using strategic costs management together with company's strategic planning as an important management tool within international competition. This research as well uses theory background to collate the management practice. It comes to conclusion that the most pertinent method is Direct Costing because it provides more suitable information to the foreign trade management./p/abstract_text