Cost Accounting System Research Articles

Contemporary Cost Management Techniques:the Appropriate Alternative to the Traditional Cost Accounting Systems Applied in the Iraqi Industrial Units – An Applied Case

Contemporary Cost Management Techniques:the Appropriate Alternative to the Traditional Cost Accounting Systems Applied in the Iraqi Industrial Units – An Applied Case

OPTIMIZATION OF PRODUCTION COSTS OF AGRICULTURAL COOPERATIVES AS A FACTOR IN THE FORMATION OF A STABLE FOOD SUPPLY SYSTEM

the article deals with the economic functions that can be performed within the framework of the development of cooperative forms of management that affect certain indicators of socio-economic potential of rural areas, optimization of production costs of agricultural cooperatives. The paper describes the further development of agricultural cooperation, taking into account the optimization of production costs, the impact on the identified factors that will contribute to the agricultural economic sustainable development of rural areas sustainable food security system. The development of agricultural enterprises is a priority in the market economy. The article describes the development support of agriculture, through the modernization of existing farms the opening of new large holdings small farms. Agricultural entities are constantly searching for the most optimal effective forms of cost management. If earlier traditional cost accounting systems were justified, now, in the modern competitive environment with Kazakhstan's accession to the WTO, it is necessary to review existing approaches. The method of cost accounting used in the main branches of agriculture is based on the generalization of costs for technological processes associated with the stages of work provided for by production technology in crop livestock production, can be characterized a process-by-process approach. The use of such modern cost accounting systems as and target-costing is the most promising way to solve the problem of modifying the current methodology for cost accounting calculating the cost of production at agricultural enterprises. The use of the cost accounting system Kaizen-costing (translated from the Japanese improvement in small steps) is inextricably linked with the introduction of the Japanese philosophy practice of Kaizen the related concept of lean manufacturing (lean technology)-a management concept based on the desire to eliminate all types of losses.

Improvement of the mechanism of management accounting of enterprise expenses in the conditions of clusterization

The object of research is the implementation of clustering of the economy as an effective mechanism for management accounting of the costs of enterprises. One of the most problematic areas is the identification of the main priority areas of clustering the economy, which will actively influence the development of management accounting of enterprises' costs. The use of a cluster mechanism for management cost accounting, thanks to management, information, personnel, financial, investment, and innovation potential, will create a research base for developing cost accounting methods and assess the prospects for its use in clusters.
 The analysis of the current state of the introduction of clustering of the economy is made on the example of Ukraine. The main characteristics of the directions of development of the introduction of clustering of the economy have been determined. The main priority areas of clustering of the economy will actively influence the development of management accounting of enterprises' costs.
 In the course of the study, approaches to clustering the economy as an effective mechanism for management accounting of enterprises' costs are used. The stages of the introduction of clustering of the economy as an effective mechanism for management accounting of the costs of enterprises are determined. These stages provide for the determination of the role of clustering the economy in creating an effective mechanism for accounting for expenses in clusters and the development and implementation of action plans for its implementation. The next step is to analyze the implementation of management accounting of expenses in clusters and develop the principles of its formation. For their implementation, it is proposed to develop directions for the development of the introduction of clustering of the economy and to present the cluster mechanism as an effective factor in improving the management accounting of enterprises' costs. Thanks to this, it is possible to prevent and solve the problems of management accounting of expenses in clusters and to increase the efficiency of the cluster association. In comparison with similar well-known methods, the proposed approaches allow to form an effective management cost accounting system and improve management in clusters using the cluster approach.

A Model of Product Life Cycle Cost Management Based on the Example of the Spartan Multimedia Shooting Training System

Cost management is a process that contributes to increases in efficiency that have an impact on a finished product. Comprehensive cost management uses information that is created by the cost accounting system and new concepts of measurement and valuation of product manufacturing costs. This paper presents the product life cycle costing (LCC) method and the target cost method as concepts used in cost management based on the example of the SPARTAN system. SPARTAN is a stationary training system designed to train, monitor and evaluate sighting and shooting techniques for small arms. The LCC method refers to the estimated cost of a product (in our case, the SPARTAN system) life cycle and it is calculated as the sum of the acquisition costs, ownership costs and operating costs. Having taken into account costs of acquisition, ownership and operation, the results of the LCC analysis were obtained, which show that, keeping in mind the whole life cycle cost, it will be more profitable to purchase the modernized version of the SPARTAN system despite its higher acquisition costs.

THEORETICAL AND METHODOLOGICAL APPROACHES TO THE INTERPRETATION OF THE CONCEPT OF «COSTS»

Introduction. An important component in the management system of the enterprise is the assessment of the effectiveness of management actions, which involves comparing the results of activities with the costs of achieving these results. As costs can be considered any cost of resources (fixed assets, materials, labour resources in the form of working time, wages, etc.). Methods. The theoretical and methodological basis of the study is a systematic approach and dialectical method of cognition, which were used to study the fundamental provisions of economics on the formation of cost management of vegetable enterprises. General scientific methods were used to achieve the goal of the study: analysis, synthesis, induction, deduction (determination of the essence of the category “costs”, generalization of the peculiarities of the formation of costs of agricultural enterprises and the basics of their management); abstract and logical (formulation of conclusions, proposals) and other generally accepted methods and modern economic and statistical techniques. Results. Summarizing the existing approaches to determining the nature of production costs, we can conclude that they represent a fee for the possibility of production (fee for the use of resources, services, works, etc.), which varies depending on the conditions of its implementation, which allows to achieve goals (the main of which in terms of market relations is profit maximization). Discussion. Ukraine's transition to IFRS will certainly improve the quality of economic information in the field of cost accounting and product costing, associated with a number of difficulties due to differences in management accounting methodology, as well as cost accounting according to IFRS and NP (S) of accounting. These include differences in terminology and categorization of the methodological apparatus, in the composition and principles of grouping and distribution of costs; different approaches to explaining the nature and origin of cost groups and their distribution; temporary focus in accounting and cost analysis. In our opinion, these difficulties can be solved and require further study and classification of differences in cost accounting systems, as well as the development of methods for transforming cost data generated in one of the systems adopted by the company as a basis for parallel format data. Keywords: costs, prime cost, resource, production, capital, wastage, losses.

Accounting ERP Costing System of Electric Energy Enterprise Based on Energy Saving and Emission Reduction

The paper proposes an accounting cost accounting system for power plants based on energy conservation and emission reduction. It is found that the factory needs to improve the cost control system including environmental costs, and incorporate various subjects such as carbon trading, carbon emission reduction, and carbon tax. The cost control in the era of low-carbon economy is to determine the optimal exhaust gas temperature value under each load to further reduce the coal consumption of the generator set. At the same time, in order to reduce energy loss, the paper also proposes a costing method based on elastic network algorithm, which will amortize the environmental cost of power generation in power companies, and then calculate the cost of the project to realize the power generation of power companies.

Increasing Energy and Material Consumption Efficiency by Application of Material and Energy Flow Cost Accounting System (Case Study: Turbine Blade Production)

It is often difficult to extract data on material and energy wastes and related costs in the value chain of manufacturing products. Many organizations are not fully aware of the actual costs of material and energy wastes. For this purpose, advanced costing methods should be used. For this case study, we used material and energy flow cost accounting (MEFCA) to determine material costs, losses, and waste management in the manufacturing of turbine blades at the Iran Power Plant Company. Using the extracted data, the manufacturing costs of turbine blades were studied. The conventional method of turbine blades production is the machining method, which produces a significant amount of material and energy waste. By studying different methods, we found that there is an alternative method called forging, which reduces losses and costs. Finally, the costs of the two methods were compared. Engineering economics techniques were also used to compare the two methods on a long-term planning horizon.

IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM

The article carries out a critical analysis of the traditional approach to costing. The paper reveals the problem of distortion of the cost of manufactured products from the point of view of making management decisions. The authors justify the expediency of using the ABC system for accounting and distribution of overhead costs. The study gives the interpretation of the concepts used in the functional distribution of costs. The article highlights and discloses a step-by-step algorithm for the distribution of indirect costs when using the ABC system. The paper gives the advantages of using this approach in order to generate management information about the products and activities of the company. Along with that, the authors analysed the difficulties associated with the practical implementation of the functional approach in the accounting and distribution of overhead costs, in particular with the detailed information in the context of operations and cost pools.

КОНЦЕПТУАЛЬНІ ЗАСАДИ ПОБУДОВИ УПРАВЛІНСЬКОГО ОБЛІКУ ЦЕНТРІВ ВІДПОВІДАЛЬНОСТІ ПРИ БЮДЖЕТУВАННІ НА ОЛІЙНО-ЖИРОВИХ ПІДПРИЄМСТВАХ УКРАЇНИ

Анотація. Проаналізовано управлінський облік центрів відповідальності, що утворюють специфічні об’єкти обліку витрат, а саме бюджетні центри відповідальності. Представлена система управлінського поопераційного обліку витрат відповідає вимогам бюджетування і стає необхідною умовою контролю за рівнем дотримання нормативів та забезпечує обґрунтоване формування виробничої собівартості продукції з технологічних переділів на олійно-жирових підприємствах. Інформаційним підґрунтям процесу складання бюджету є управлінський облік. Більше того, управлінський облік забезпечує потрібну інформацію для планування бюджету, контролю та аналізу виконання бюджету, а також є однією зі складових процесу бюджетування. Оцінка центрів відповідальності є корисною для розуміння циклів економічної діяльності, економічних процесів і структурних підрозділів у рамках створення бюджетів. Система управлінського обліку на основі операцій переважно відповідає вимогам бюджетування, що стає необхідною умовою контролю за стандартними умовами ведення обліку. Для одержання більш деталізованої інформації для аналізу і контролю пропонується організацію обліку витрат здійснювати за операціями-функціями технологічних процесів, що дає можливість аналітикам знаходити вузькі місця в технології через виявлення зайвих технологічних функцій і операцій та посилити контроль за дотриманням доведених бюджетів кожному «центру відповідальності». Облік центрів відповідальності має на меті оцінити управлінську діяльність окремого центру відповідальності, надати звіт про відповідальність та інформаційний звіт для оцінки вищого керівництва. Це метод управлінського обліку, який вимірює результати кожного центру відповідальності, що дозволяє кожному керівникові усвідомлювати відповідальність у своїй галузі, що стосується обліку витрат і бюджетування. Ключові слова: управлінський облік, центри відповідальності, технологічні переділи, бюджетування, звіт центру відповідальності, гнучкі бюджети. Формул: 0; рис.: 0; табл.: 2; бібл.: 14.

Persistent but adaptable – the path dependent development of German cost accounting

PurposeThis paper aims to investigate how and why German cost accounting prevails and develops in German multinational organisations despite the various indications in the literature that it will converge towards an anglophone system over time. To analyse this, the authors draw on the ideas of professional practices (Jarzabkowski et al., 2016) and their path dependency (Schreyögg and Sydow, 2011) as a method theory.Design/methodology/approachThe authors deploy an exploratory method using multiple case studies to determine similarities and differences between organisations concerning how cost accounting practices developed over time. They conducted interviews with cost accountants, group controllers and managers of German multinational organisations as well as experts from higher education institutions and consultancies.FindingsThis paper shows the path-dependent development of German cost accounting. It identifies self-reinforcing learning and complementary effects that seem to make it inefficient for organisations to deviate from the learned path as well as economic and normative pressures that affect the design of cost accounting systems.Originality/valueBy considering German cost accounting a path-dependent professional practice, this paper illustrates how and why the core of German cost accounting prevails, although organisations make adjustments within the existing structures to respond to the pressures they face. This paper hereby highlights the role of cost accountants in defining (and consequently bringing about or preventing changes to) the design of cost accounting systems.

Interaction between Decision Making and Cost Accounting Systems

Interaction between Decision Making and Cost Accounting Systems

Perspectives of JIT system application at machine building enterprises

Тhe article describes the features of the Japanese system of management and organization of production JIT, shows its structural elements, analyzes the key conditions of use, identifies the main advantages of the JIT system. The features of the system of cost accounting and calculation within the framework of JIT are established, the factors hindering the use of the JIT system at Russian enterprises are determined.

The Impediments to Cost Accounting System Change

The Impediments to Cost Accounting System Change

ACCOUNTING OF INDIRECT MANUFACTURING COST BASED ON ACTIVITY-BASED COSTING (ABC) AND ANALYSIS OF THEIR EFFECTS ON PRICING

The current article covers the application of indirect manufacturing costs according to the cost system on the basis of activities and their effect on pricing. The system considers costs based on activities from modern cost accounting systems that work to achieve a distinguished level of accuracy in determining indirect manufacturing costs through its focus, it also provides new control methods that contribute to preserving the indirect costs in the organization and rationalizing its uses, and how it affects the pricing of products. The importance of this research lays in from the fact that it is looking to clarify indirect manufacturing costs and how to allocate them and to study the costing system on the basis of activities, which aims to allocate indirect costs to products more accurately, especially with the increase in the total of indirect costs as a result of technological development and assistance to management in improving the pricing process.

Implementation Study of Activity Based Costing System to Define Indirect Costs on Ship Repair Industries

Good quality, the right turnaround time, and affordable service costs are three important points that must be paid attention to in repair shops offering their services. In determining the selling price of repair services, companies need accurate information about the cost of goods manufactured, which consists of direct costs and indirect costs. In general, the imposition of indirect costs to products uses a traditional cost accounting system so that costs distortions often occur. With the development of existing knowledge, companies must be able to increase their competitiveness and find alternative methods than traditional cost accounting systems. The activity based costing method developed and became a cost accounting method by assigning costs to activities based on the consumption / use of resources. First, activity identification is carried out based on existing business processes, both direct and supporting repair activities. Second, from the results of the identification of existing activities, identification of needs that trigger an activity that can be called an activity driver is carried out. After identifying the activity driver, the type of activity in the ship repair process is obtained which affects the high indirect cost expenditures. By using the activity based costing method, the indirect cost value on ship 1 is IDR 78,994,805, - and on ship 2 of IDR 57,890,169, -. These values are true values and can be traced to each activity through the use of resources. From these results it can be seen that the value of indirect costs when calculated by the activity based costing method produces a smaller value when compared to the existing method. On ship 1, using the activity based costing method, indirect costs decreased by 44% from the calculation of the existing conditions and on ship 2 decreased by 38% from the calculation of the existing conditions.

Could the next Indonesian income tax law adopt to the concept of income under IFRS

This study has two purposes. The first is to explore the implementation of income concepts under current income tax law (UU PPh) before and after the convergence of International Financial Reporting Standards (IFRS) in Indonesia. The second is to explore whether the new UU PPh could adopt the notion of income under IFRS. By using a qualitative approach, this study concluded that before and after IFRS convergence, the income definition under current UU PPh has never changed since its first 1983 enactment. Such condition has resulted in some income tax issues based on the ability-to-pay principle and realisation doctrine. The main problem relates to the realisation principle as part of the historical cost accounting system, whereas accounting income refers to the mark-to-market, ignoring realisation rules. The second conclusion is that the income concept under the next UU PPh can partially apply the accounting income concept because it still needs the realisation principle.

Characteristics of cost accounting for reproduction of the residual operational resource of the building

Reproduction of the residual operational resource is one of the main elements of the technical and technological development of the national economic complex of the country. The complexity of cost accounting for construction work to reproduce the operational resource is explained by the difference in the forms and content of the work. In general, the reproduction of the operational resource of the building is reconstruction and major repairs (and their private manifestations). The calculation procedure, depreciation accrual, legal differentiation in accounting practice differ, and often act as a factor of uncertainty in accounting policy. The object of the study is the passive part of the fixed assets of the country’s property complex. The subject of the study is cost accounting for reproduction of the passive part of the property complex. The purpose of the study is to reveal the characteristics of the cost accounting system for the restoration of the residual operational resource of buildings. The research methodology assumes a theoretical and heuristic approach using generally recognized methods of scientific cognition: synthesis, classification, measurement, etc. The result of the study is the disclosure of the elements of accounting policy, disclosure of the forms and content of construction work on the reproduction of the operational resource. The composition of costs is considered depending on the type of construction work carried out, the procedure for calculating depreciation and the formation of accounting policy at the enterprise in accordance with the current and legal norms of legislation in the country. &nbsp

Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania

Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparties in the trading deals. The unfair price offered to sunflower farmers was discovered in this study to be a misfortune in their investments. The conventional average farm-gate price of TZS. 622.449/Kg was found to be out of the price ranges that were backed by traditional cost accounting system, leaving farmers making losses of minimum TZS. 99.889/Kg. This study was conducted in Singida Region, Tanzania where a sample of 206 household farmers was used to obtain primary data on activity costs while the secondary data concerning the conventional price were obtained from the Districts’ sales reports and farmers’ records. Inferential statistics with one-sample test model was used alongside the IBM SPSS 26.0 statistical package in the quantitative data analysis. It was recommended, further studies to be conducted to explore more about the production cost that is backed by the activity-based costing (ABC) system, as it is more effective in assigning overheads to cost object than the traditional costing.

Could the next Indonesian income tax law adopt to the concept of income under IFRS

This study has two purposes. The first is to explore the implementation of income concepts under current income tax law (UU PPh) before and after the convergence of International Financial Reporting Standards (IFRS) in Indonesia. The second is to explore whether the new UU PPh could adopt the notion of income under IFRS. By using a qualitative approach, this study concluded that before and after IFRS convergence, the income definition under current UU PPh has never changed since its first 1983 enactment. Such condition has resulted in some income tax issues based on the ability-to-pay principle and realisation doctrine. The main problem relates to the realisation principle as part of the historical cost accounting system, whereas accounting income refers to the mark-to-market, ignoring realisation rules. The second conclusion is that the income concept under the next UU PPh can partially apply the accounting income concept because it still needs the realisation principle.

The role of costs’ knowledge in the contemporary enterprises

Motivation: Contemporary enterprises need useful information to reach success in times of globalization of market economy. Costs are an indispensable economic category, especially in decision process. Costs constitute the wear and tear expressed in the financial measure. Generating costs is reflecting the manner of the conducting business activities. Costs are incurred to reach the income. Cost is inevitable, whereas income is probable. Therefore, cost control and cost management matter. The information about cost is primarily used for: regulating the prices, closing the decisional cost and result accounts, providing ‘activity based costing’ analyses (including contemporary ‘time-driven activity based costing’), as well as budgeting the operational and control costs. The development of cost accounting systems results from globalization and growth in importance of the knowledge in managing contemporary enterprises. Essential premises of the development include: loss of timelines of the reporting cost accounting, rise in the automation and technology in the production, rise in the share of indirect costs in all-in costs and increase in the usefulness of the knowledge for the costs indirect, dynamic growth of the role of information in the business administration, increase in the costing awareness of managers. Aim: This article’s research aim is to explain the influence of cost accounting instrumentation on managing contemporary enterprises, including the decision-making process. Results: Knowledge about costs getting from cost accounting, have a significant impact on a contemporary enterprise management.