Open AccessACCOUNTING OF INDIRECT MANUFACTURING COST BASED ON ACTIVITY-BASED COSTING (ABC) AND ANALYSIS OF THEIR EFFECTS ON PRICING
Author(s) -
Bohdan Zasadnyi,
Mohammed Ahmed Khudhur
Publication year - 2021
Publication title -
včenì zapiski tavrìjsʹkogo nacìonalʹnogo unìversitetu ìmenì v.ì. vernadsʹkogo. serìâ: ekonomìka ì upravlìnnâ
Language(s) - English
Resource type - Journals
eISSN - 2707-1103
pISSN - 2523-4803
DOI - 10.32838/2523-4803/71-2-14
Subject(s) - activity based costing , cost accounting , total absorption costing , cost driver , indirect costs , process costing , management accounting , target costing , industrial organization , business , product cost management , risk analysis (engineering) , throughput accounting , control (management) , process (computing) , work (physics) , operations management , economics , accounting information system , computer science , marketing , accounting , cost engineering , engineering , financial accounting , mechanical engineering , management , operating system
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.