THE INCREASE OF PERFORMANCE OF AN ENTITY BY THE
             CONVERSION OF THE HIDDEN COSTS


                  Sorin Briciu, “1 Decembrie 1918” University of Alba Iulia
                     Sorinel Căpuşneanu, Artifex University of Bucuresti

ABSTRACT: This article offers an intrinsic image of the hidden and identified costs at the
level of an entity, including the causes and their ways of control. The main research
instrument used here was the questionnaire and the results determined a better knowledge of
the theoretical and methodological aspects necessary in order to identify the hidden costs at
the level of an entity. Several aspects of the hidden costs are discussed, as well as their
characteristics, evaluation, causes and generating sources. The connections between
disfunctionalities, the generating factors of the hidden costs and their financial components
are presented in theory and represented in graphics. The article closes with the authors’
conclusions on the identification, determination, conversion and presentation in a situation of
synthesis of the hidden costs of an entity, as well as the importance managers should grant to
it.

Keywords: hidden costs, Activity-Based Costing, control, performance, opportunity costs.

JEL codes: M21, M41