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ИД «Финансы и кредит»






International Accounting

Cost accounting: substance and importance

Vol. 18, Iss. 31, AUGUST 2015

Received: 13 August 2015

Accepted: 21 September 2015

Available online: 22 October 2015

Subject Heading: Managerial accounting

JEL Classification: 

Pages: 24-31

Kuvaldina T.B. Omsk State Transport University, Omsk, Russian Federation

Importance Contemporary accountants, economists and top managers of the Russian entities adopted the concept of cost accounting from accounting practices of the Socialist times. Numerous publications and monographs on management accounting consider cost accounting, mainly, in retrospect. In the meantime, cost accounting is a crucial part of the existing information system serving as an information pipeline for such management functions as planning, analysis and evaluation of results, control and regulation.
     Objectives The research intends to investigate the substance, necessity of cost accounting, and its main components for accountants and technical specialists. In this respect, the article overviews the essence of cost accounting concept, identifies users of information that is generated as part of cost accounting, and proposes a cost accounting model of profit-making companies, considering interests of accounting, engineering and technical specialists, managers.
     Methods The research draws upon an analysis, comparison, systematization and generalization of contemporary scientific and training literature on the subject.
     Results The article discloses the substance of cost accounting, specifies users of information that is generated as part of cost accounting, proposes a cost accounting model for profit-making companies and describes cost accounting tools.
     Conclusions and Relevance The proposed cost accounting model of the profit-making company, as seen by accountants, managers and engineering and technical specialists, will allow improving the theoretical framework of management accounting, which comprises cost accounting, effectively managing costs, expenses in order to optimize business operations, maximize profit and make the business more profitable.

Keywords: cost accounting, management accounting, costs, accounting


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