General Knowledge Framework For The German Cost Accounting System (GPK): A Theoretical Perspective

Abstract

Using a theoretical and analytical approach, this paper explores the advantages of applying the German cost regulator (GPK). The results show that the (GPK) system (Grenzplankostenrecnung) is one of the most widely used and successful cost management systems, dating back more than (60) years in Germany and German-speaking countries. The (GPK) system helps economic units calculate the cost of a product or service and allocate types of price and distribution to cost centers. This will provide information to managers of economic units to make decisions regarding production and sales and know the capacity of resources. This system is considered the tool that contributes to planning and control (control). In this study, the emergence and emergence of the (GPK) system will be known as its concepts, scope of use, and knowledge of its principles, foundations, elements, features, and limitations.