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 di...
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| Format: | Article |
| Language: | English |
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Publishing House of the State University of Management
2021-02-01
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| Series: | Вестник университета |
| Subjects: | |
| Online Access: | https://vestnik.guu.ru/jour/article/view/2628 |
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| author | G. A. Adamova L. Sh. Zhafyarova |
| author_facet | G. A. Adamova L. Sh. Zhafyarova |
| author_sort | G. A. Adamova |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-42933a8cdbd84ad588c202d1a4ac5ccf |
| institution | Kabale University |
| issn | 1816-4277 2686-8415 |
| language | English |
| publishDate | 2021-02-01 |
| publisher | Publishing House of the State University of Management |
| record_format | Article |
| series | Вестник университета |
| spelling | doaj-art-42933a8cdbd84ad588c202d1a4ac5ccf2025-02-04T08:28:07ZengPublishing House of the State University of ManagementВестник университета1816-42772686-84152021-02-0101707610.26425/1816-4277-2021-1-70-761944IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEMG. A. Adamova0L. Sh. Zhafyarova1State University of ManagementState University of ManagementThe 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.https://vestnik.guu.ru/jour/article/view/2628ab-managementabc systemallocation of costscost accountingcost drivercostingindirect costsmanagement accountingmanagerial decisionsoverhead costs |
| spellingShingle | G. A. Adamova L. Sh. Zhafyarova IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM Вестник университета ab-management abc system allocation of costs cost accounting cost driver costing indirect costs management accounting managerial decisions overhead costs |
| title | IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM |
| title_full | IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM |
| title_fullStr | IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM |
| title_full_unstemmed | IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM |
| title_short | IMPROVING THE ACCOUNTING AND DISTRIBUTION OF OVERHEAD COSTS BASED ON THE USE OF FUNCTIONAL COST ACCOUNTING AND ABC SYSTEM |
| title_sort | improving the accounting and distribution of overhead costs based on the use of functional cost accounting and abc system |
| topic | ab-management abc system allocation of costs cost accounting cost driver costing indirect costs management accounting managerial decisions overhead costs |
| url | https://vestnik.guu.ru/jour/article/view/2628 |
| work_keys_str_mv | AT gaadamova improvingtheaccountinganddistributionofoverheadcostsbasedontheuseoffunctionalcostaccountingandabcsystem AT lshzhafyarova improvingtheaccountinganddistributionofoverheadcostsbasedontheuseoffunctionalcostaccountingandabcsystem |