Impact Of Inflation On Input Costs.

Nowadays, any company, be it small, medium or large, requires a constant analysis of the implementation of control techniques and cost management of its production processes, representing a need for these companies to have quantitative information of their operations, which facilitates management decision making and even more in situations such as the current ones in which the constant fluctuations in the acquisition costs of raw materials and inputs hinder the continuation of productive operations..

To this effect, cost accounting is an information system for analyzing, recording, accumulating, interpreting, controlling and summarizing information on production and administration costs as well as their financing. This is of great value because management is constantly confronted with different situations that directly affect the operation of the company.

In this sense, the lack of efficient economic policies and institutional controls that promote an adequate management make that the problems referred to the economy have worsened, causing among other factors the constant increase of the inflationary rate; which has generated the variation of the costs in which the entities regularly incur, producing a rise in the prices of goods and services.

This situation has made it necessary for organizations to establish comparisons of their cost structures in different economic periods, in order to obtain information that will allow them to detect differences that could be advantageous or those that could hinder the full functioning of their operating activities.

Consequently, every organization must be prepared to face the current inflationary situation and be able to innovate through the application of strategies that allow the company to adjust its management schemes to the economic reality.

The knowledge of the costs of inputs and even the comparison of these costs in different economic periods is necessary for institutional planning with respect to the study of new production alternatives, the decision making of measures that avoid the negative performance of inflationary factors that may generate deviations between actual and planned costs in the exercise of the functions of control and evolution of management.