New Approaches for Cost Grouping in Cost Management and Accounting

Abstract

This article is devoted to resolving a relevant and objectively existing problem of information insufficiency formed in accounting and presented in reporting to identify factors and results of the impact on the cost value of management decisions. Therefore, the purpose of this article is to develop and justify a new, previously unknown to science, grouping of costs by factors of searching a reserve to reduce costs. To achieve this goal the following methods were used: analysis and synthesis, deduction and induction, grouping, detailing, thought experiment, classification. As a result of applying these methods, a new grouping of costs was developed consisting of 3 classes selected on the basis of the decision-making subject, subclasses were determined in each class on the basis of the objects of management impact. It was found out that it is most appropriate to form this grouping of costs in the conditions of applying the “Standard-cost” method or the normative method. The scope of cost management tasks was also identified; their solution is based on the use of the proposed grouping of costs. This article will be useful for both researchers engaged in the development of theoretical bases for accounting and cost management and for practitioners in the field of management accounting, as well as for managers at various levels.