Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Formation of Hybrid Costing System Accounting Model at the Enterprise

Author(s): Svetlana Drobyazko, Halyna Pavlova, Tetiana Suhak, Viktoriya Kulyk, Shakhida Khodjimukhamedova

To obtain detailed cost information, a hybrid cost accounting system is needed that combines process and job-order methods, based on the accounting of normative (standard) and actual data, by distributing costs for direct and indirect ones, by allocating the variable and constant parts in indirect costs. 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 range of use of the developed cost matrix is quite wide, it can serve as budgeting of the standard costs of the raw cotton processing process and planned costs of the completion of the assignment (order) for the next reporting period, the generalization of actual indicators. A complete cost matrix with analytical cost detailing and the ability to compare standard (planned) costs is much more complex.