Importance Production costing is the principle and most complicated component of costing and developing of a production and economic mechanism in any entity. When the management accounting and control system is successfully applied, activities of a telecommunications company and some types of services will be profitable; the company will be able to make provisions for decline in the cost of services, determine prices, assess the economic efficiency of innovative technologies implemented. Conventional accounting and control methods do not always allow implementing contemporary management requirements completely. The innovative development and specificity of telecommunications companies require implementing process-oriented management accounting methods in order to enhance the entire system of managing a company and its units. Objectives The objective of the research is to prepare recommendations on the ways to build the main components of the activity-based costing (ABC) system and increase the efficiency of telecommunications companies. Methods Using common scientific methods and accounting procedures, we find out advantages of using the ABC system, determine business processes, cost drivers and procedures for implementing the system into practical operations of telecommunications companies. Results We propose our recommendations on the ways to implement the ABC management accounting system in operations of telecommunications companies. We articulate suggestions on calculating the cost of business processes (main, ancillary, administrative), recommend resource drivers to correctly allocate indirect costs, and reveal advantages of the ABC system for telecommunications companies. Conclusions and Relevance If the above accounting concept is adapted to the specificity of a telecommunications company, it will allow improving the managerial decision-making process and the efficiency of the telecommunications company. We conclude that, if applied, the ABC system will help telecommunications companies fulfil their competitive advantages on the basis of the ABC information.
Keywords: management accounting, cost accounting, telecommunications, business process, ABC system
References:
Brimson J., Antos J., Collins J. Protsessno-orientirovannoe byudzhetirovanie. Vnedrenie novo-go instrumenta upravleniya stoimost'yu kompanii [Driving Value Using Activity-Based Budgeting]. Moscow, Vershina Publ., 2007, 332 p.
Bulgakova S.V. Upravlencheskii uchet: problemy teorii: monografiya [Management accounting: issues of the theory: a monograph]. Voronezh, Voronezh State University Publ., 2006, 160 p.
Vakhrusheva O.B. Procedury organizatsii upravlencheskogo ucheta v kommercheskoi organizatsii[Procedures for setting up management accounting practices in a profit-making company]. Gumanizatsiya obrazovaniya = Education Humanization, 2014, no. 5, pp. 52–57.
Vakhrusheva O.B. Upravlencheskii uchet v sovremennykh usloviyakh razvitiya: monografiya [Management accounting in modern conditions for development: a monograph]. Odintsovo, Humanities University of Odintsovo Publ., 2010, 147 p.
Vakhrusheva O.B. Formirovanie upravlencheskogo ucheta na osnove garmonizatsii ucheta, analiza, budzhetirovaniya i kontrolya [Setting up management accounting practices by harmonizing the accounting, analysis, budgeting and control]. Auditor, 2014, no. 11, pp. 62–67.
Vakhrushina M.A. Bukhgalterskii upravlencheskii uchet [Management accounting]. Moscow, Omega-L Publ., 2010, 576 p.
Vakhrushina M.A. Problemy i perspektivy razvitiya rossiiskogo upravlencheskogo ucheta [Problems and prospects of the Russian management accounting development]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2014, no. 33, pp. 12–23.
Drury C. Upravlencheskii uchet dlya biznes-reshenii [Management Accounting for Business Decisions]. Moscow, YUNITI-DANA Publ., 2003, 655 p.
Zaitsev M.G. Metody optimizatsii upravleniya dlya menedzherov: Komp'yuterno-orientirovannyi podkhod [Methods for optimizing the management for managers: The computer-oriented approach]. Moscow, Delo Publ., 2007, 304 p.
Ivashkevich V.B. Aktual'nye problemy upravlencheskogo ucheta [Current problems of management accounting]. Upravlencheskii uchet = The Management Accounting Journal, 2010, no. 10, pp. 10–14.
Kerimov V.E. Bukhgalterskii upravlencheskii uchet [Financial management accounting]. Moscow, Dashkov i K Publ., 2014, 482 p.
Kondukova E.V. ABC: sebestoimost' bez iskazhenii [ABC: the cost without distortions]. Moscow, EKSMO Publ., 2008, 490 p.
Konstantinov V.A. Algoritm realizatsii metoda Activity Based Costing (ABC) na rossiiskikh predpriyatiyakh [An algorithm for implementing the Activity Based Costing method (ABC) in the Russian enterprises]. Upravlencheskii uchet = The Management Accounting Journal, 2013, no. 8, pp. 19–24.
Manyaeva V.A., Andreeva Yu.S. ABC-metod – uchetnaya informatsionnaya sistema strategicheskogo upravleniya zatratami [The ABC method is an accounting data system for strategic management of costs]. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics, 2014, no. 7, pp. 86–90.
Reznikova N.P., Demina E.V. et al. Menedzhment v telekommunikatsiyakh [Management in telecommunications]. Moscow, Eko-Trendz Publ., 2005, 392 p.
Ryzhkov K.Uchet u organizatsii svyazi [Accounting in a telecommunications company]. Audit i nalogooblogenie = Audit and Taxation, 2013, no. 4, pp. 28–32.
Safonova L.A., Plotnikova N.Yu., ZuevaE.I. Razdel'nyi uchet zatrat v telekomunikatsiyakh [Separate accounting of costs in telecommunications]. Moscow, Goryachaya liniya-Telekom Publ., 2007, 192 p.
Slin'kov D.G. Upravlencheskii uchet: postanovka i primenenie [Management accounting: setting up and operation]. St. Petersburg, Piter Publ., 2010, 304 p.
Chaadaev V.K. Biznes-protsessy v kompaniyakh svyazi [Business processes in telecommunications companies]. Moscow, Eko-Trendz Publ., 2004, 176 p.
