Cost accounting applications in local governments: the case of municipal tariff and price setting in the north of Portugal

Abstract

Local governments currently face a lack of resources to meet the continuous rise of local needs. The revenues in which local governments hold the largest financial leeway come from tariffs and prices. Therefore, it is important to analyse the information that is used in setting the rates to charge to goods and services users. The local government accounting chart answered this need by establishing cost accounting to be compulsory in the identification of the working costs and the costs underlying the setting of goods and services’ tariffs and prices. Therefore, we understand that it is pertinent to ensure whether local government is implementing such an accounting system, that it is supplying relevant information for setting the rates to charge to consumers.