| Abstract [eng] |
Exact value of production or service costs is important issue for all manufacturing or service companies. There are many methods and approaches of costing. The mode of production, the organization of production, company activities, environment and other factors influence method to use for production costing. In order to get correct calculation of production costs, all costs incurred by company firstly must be properly indentified, direct costs should be assigned, overhead allocated to objects which cost must be calculated. However, method of calculation chosen by nature of the production is not most appropriate for accounting and allocating indirect costs. Meanwhile the authors, who analyzed the ABC system, points out that ABC method the indirect cost allocation task handle most notably. In order to use benefits of ABC method and method chosen by nature of production (in this case process phase costing method) encountered a problem: process costing and ABC methods are presented separately into science or professional literature, no one does not examine the possibility to use these two methods in single production costs calculation model. The object – features and benefits of process phase costing and ABC methods. The aim – to design a costing model which can accurately and effectively calculate the direct cost of products, rationally allocate cost of company activities to production. The objectives: • To analyze the nuances of choice cost calculation method by company activities; • To study the process costing and ABC methods, to assess strengths and weaknesses of these methods; • To investigate whether the standard costing method provides a reasonable accounting of all costs, what are the reasons due to the emergence of the ABC method; • To analyze the juristical regulation of production costs, composition of output costs and distribution of production costs; • To summarize the various authors research of evaluation of production costs methods; • To introduce the company for which will be developed costing model; • To create a unique model by integrating the ABC system into process costing method in order to calculate production costs. Process of designing the model should be based on output of theoretical and empirical research; • To demonstrate in practice how created model works, to present benefits of new model. Based on theoretical and empirical studies output it was developed a process costing model with integrated ABC system for calculating the costs of production. The essence of this model is: direct production costs are estimated by using guidelines of process phase costing method, indirect production costs are assigned for different business activities by support of ABC system. At last costs of these activities are allocated to products by criteria of distribution or complexes of criteria of distribution. This model for manufacturing company helps to measure the cost of production more accurately, to optimize the allocation of different activities costs, to detect opportunities for cost reduction, to find out the true profitability of the product, to prevent the loss-making price fixing on the basis of production cost. |
