The article is devoted to the study of target costing cost accounting system, which can be used as a tool for strategic enterprise management. The role of the cost accounting system as a system-forming element necessary to maintain a stable level of profit both in the short term and in the long term has been studied.
The hybrid cost accounting system is based on a symbiosis of the principles and procedures of the cost accounting methods for the Process Costing System and Job-Order Costing system, combines them in accordance with the characteristics of the business and management policies, and increases the efficiency of enterprise cost management.
The target costing cost accounting system is one of the areas of strategic company management that helps the organization adapt management accounting to a policy of rational cost reduction.
The principles of cost accounting are as follows: 1. Cost accounting systems aim to work out the cost of producing goods and services soon on completion and not long after production. 2. Cost accounting also aims to attribute all costs to individual products that are manufactured and sold (or with services generated and sold).
1. Cost accounting systems aim to work out the cost of producing goods and services soon on completion and not long after production. 2. Cost accounting also aims to attribute all costs to individual products that are manufactured and sold (or with services generated and sold). This process consists of two features: 3.
Cost accounting helps to achieve cost control through the use of various techniques, including budgetary control, standard costing, and inventory control. Each item of cost (namely, materials, labor, and expenses) is budgeted at the beginning of the period and actual expenses incurred are compared with the budget.