Direct Costing in 1970u27s in the U.S.(1) : A Review of Product Costng Function of Direct Costing

摘要

This article discusses a trend of Direct Costing in 1970u27s in the U.S. In the early 1970u27s, there were some insistence on an application of Direct Costing for tax reporting purpose. And the controversy of Direct Costing, Fekrat versus Gordon=Cook and Largy, was occurred. In 1973,the Federal Income Tax Regulation was revised. In the early 1970u27s the CASB was settled. They supported the full absorption basis for inventory costing. They put an end to the controversy of application of Direct Costing for external reporting. In the same time, some researchers applied mathematical programming to Cost Accounting. They pointed out some defects of Direct Costing and advantages of Full Costing, which were said as advantages of Direct Costing.