Financial Education - Financial characteristics of small and medium-sized enterprises

Most small and medium-sized companies are manufacturing entities dedicated to the production of a good or a service, and because they have these characteristics they are obliged to keep permanent control of their financial situation through the use of a costing system.

That is why the efficiency with which a cost structure is executed conditions the fulfillment of the achievements for the purposes that were established in the company's policies.

Consequently, the cost system of these companies must be built on solid foundations, due to the fact that there are constant changes in their production because of customer demands, so that, if this is not the case, it can lead to errors in the accounting of the company.

Thus, this research, from the theoretical point of view, will allow to know the cost system by specific orders of the lithographic company, since it is an aspect applicable to this type of entity.

That is why the cost system by work orders is especially appropriate when the production consists of special jobs or processes, rather than when the products are uniform and the production pattern is repetitive and continuous, that is to say that this process is characterized because its work orders are carried out according to the customer's requirements.