Structural Classification Methodology and Assignment of General Shop Costs for the Industrial Company’s Production Cost

The paper describes the issues of improving the grouping and rearrangement of indirect costs of industrial companies, as well as their attribution to the production costs (works, services). Structural classification is one of the most urgent problems of accounting and calculation activities. This system involves the economically justified identification and subsequent systematization of indirect costs in the accounting information space and production management of an economic entity in the real sector of the transformation economy. The study goal is to develop a methodology that allows to reduce labor costs and improve the quality of the process. Also, it helps to raise the result of forming the production cost of an industrial company, improves the information base for making managerial decisions and economic strategies for the development of the company. The foundation of the theoretical and methodological basis of the research was the use of structural classification of costs based on dichotomous relations, observations, verification, semantic and multifactorial types of economic analysis, graphical formalization, decomposition. The author considered in detail the existing approaches to the identification of indirect production costs and the model of their inclusion in the cost price. The implementation of the proposed methodology is aimed at ensuring greater efficiency of the accounting and calculation process and awareness of management decision-makers. The study results can be used by practical and scientific workers, state bodies staff in improving regulatory documents.

1. Pivkin S. A. Indirect costs and expenditure of funds of a production enterprise. Mezhdunarodnyi bukhgalterskii uchet = International Accounting. 2011;177(27):13–20. (In Russ.).

2. Mukhina E.R. Investigation of the issue of the distribution of indirect costs at electrical enterprises. Vestnik sovremennoi nauki = Bulletin of Modern Science. 2016;13(1–1):92–94. (In Russ.).

3. Gribanov A.A., Kudinova M.V. Accounting for indirect costs in the conditions of using the “direct-costing” system in crop production. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice. 2012;261(6):26–31. (In Russ.).

4. Chupakhina N.I., Ivanyukhina G.B. Multi-stage model of indirect cost distribution: Practical aspects. Nauchnye vedomosti belgorodskogo gosudarstvennogo universiteta. seriya: Ekonomika. Informatika = Scientific Bulletin of the Belgorod State University. Series: Economics. Computer Science. 2013;165(22):66–70. (In Russ.).

5. Grishina E.A. Methodology for the distribution of indirect costs in an industrial enterprise. Sovremennye tendentsii razvitiya nauki i tekhnologii = Modern Trends in the Development of Science and Technology. 2015;(1–5):49–51. (In Russ.).

6. Bashkatova T. A., Asadova D. V. Improving the methodology for distributing indirect expenses of agricultural organizations. Mezhdunarodnyi bukhgalterskii uchet = International Accounting. 2012;227(29):9–18. (In Russ.).

7. Sokolov A. Yu. Managerial accounting of overhead expenses. Moscow: Finance and Statistics; 2004. 448 p. (In Russ.).

8. Krasikova E.T. Problems of attribution of indirect costs to the cost of production in the dairy industry. Vestnik kolomenskogo instituta (filiala) moskovskogo politekhnicheskogo universiteta. Seriya: sotsial’nogumanitarnye nauki = Bulletin of the Kolomna Institute (branch) of the Moscow Polytechnic University. Series: Social and Humanitarian Sciences. 2018;(13):144–153. (In Russ.).

9. Polyakova L. P. General economic expenses of agricultural organizations, their composition and distribution. Prikladnye ekonomicheskie issledovaniya = Applied Economic Research. 2017;(S 2):52–59. (In Russ.).

10. Maslova I.A., Prozorova S.S. Managerial accounting of overhead costs: The possibilities of using the JIT (Just In Time) method and the ABC method. Upravlencheskii uchet = Management Accounting. 2006;(4):15– 26. (In Russ.).

11. Khmara E. G. Analysis of the features of the distribution of overhead costs on the example of the production enterprise LLC “TEPLOVDOM”. Vestnik Taganrogskogo instituta upravleniya i ekonomiki = Bulletin of the Taganrog Institute of Management and Economics. 2013;17(1):39–42. (In Russ.).

12. Osipov V.I., Gorina A.A. Characteristics and directions of development of management accounting systems. Vestnik universiteta = Bulletin of the University. 2019;(5):40–47. (In Russ.). DOI: 10.26425/1816– 4277–2019–5–40–47

13. Voronova E. Yu. The relationship of management and financial accounting. Auditorskie vedomosti = Audit Reports. 2009;(11):80–87. (In Russ.).

14. Zykova T. B. Accounting of expenses for the implementation of innovative activities. Krasnoyarsk: Reshetnev Siberian State University of Science and Technology; 2019. 88 p. (In Russ.).

15. Kas’yanova G. Yu. Cost of production works services: Accounting and tax. M.: ABAK; 2018. 424 p. (In Russ.).

16. Vrublevskii N.D. Managerial accounting of production costs: Theory and practice. Moscow: Finance and Statistics; 2002. 350 p. (In Russ.).

17. Mizikovskii I.E. The genesis of managerial accounting at domestic enterprises. Moscow: Ekonomist; 2006. 199 p. (In Russ.).

18. Drury K. Cost accounting by the standard-cost method. Trans. from Eng. Moscow: Audit: UNITY; 1998. 224 p. (In Russ.).

19. Khan D. Planning and control: The concept of controlling. Trans. from German. Moscow: Finance and Statistics; 1997. 799 p. (In Russ.).

20. Upchurch A. Managerial accounting: Principles and practice. Trans. from Eng. M: Finance and Statistics; 2002. 952 p. (In Russ.).

21. Horngren Ch., Foster J., Datar Sh. Managerial accounting. Trans. from Eng. St. Petersburg: Peter; 2007. 1008 p. (In Russ.).