Relative Einzelkosten- und Deckungsbeitragsrechnung: A critical evaluation of Riebel's approach

This paper is on Relative Einzelkosten- und Deckungsbeitragsrechnung as a German management accounting system that has been developed by Paul Riebel. We discuss (1) its origins, and (2) its central features comprising (i) independent cost measurement and (ii) reliable and valid cost allocation which together are claimed by Riebel to provide valuable informational support for any type of managerial decision. We illustrate our discussion by means of a short case study, juxtaposing Relative Einzelkosten- und Deckungsbeitragsrechnung to Flexible Standard Costing, another German management accounting system with a decision- oriented focus. We show that even though the application of Relative Einzelkosten- und Deckungsbeitragsrechnung in practical situations must fail, accounting theory still can learn some lessons from analyzing Riebel's ideas.