International Accounting

Cost optimization at bakeries based on management accounting tools

Vol. 20, Iss. 10, MAY 2017

PDF  Article PDF Version

Received: 19 January 2017

Received in revised form: 2 March 2017

Accepted: 11 April 2017

Available online: 29 May 2017


JEL Classification: М41

Pages: 579-595

Averina O.I. Ogarev Mordovia State University, Saransk, Republic of Mordovia, Russian Federation

Permitina L.V. Ogarev Mordovia State University, Saransk, Republic of Mordovia, Russian Federation

Importance Production cost reduction enables to achieve maximum effect at minimum cost. Therefore, development and improvement of cost accounting methods are important in production process accounting.
Objectives The purpose of the study is to review and develop the theory and practical recommendations on improvement of cost accounting and calculation of production costs that allow optimizing costs at planning and production stages, to offer a unique method of cost accounting based on the synthesis of target costing and Kaizen costing, to develop an algorithm for cost optimization.
Methods The methodology includes analysis, comparison, systematization and generalization of modern academic literature on the subject of the research.
Results The article describes modern methods of cost accounting and calculation of production cost. We offer our own technique based on the synthesis of target costing and Kaizen costing. The technique has practical importance and enables cost optimization on the basis of modern cost accounting methods.
Conclusions The most efficient methods to optimize costs and achieve target (optimal) cost are target costing and Kaizen costing.

Keywords: cost accounting, target costing, Kaizen costing, calculation, product cost


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