Management Theory and Studies for Rural Business and Infrastructure Development, Volume 34

Modern techniques of product costing at industrial enterprises

Valeriy Kachalay


An emergence of a global market comes from technological advancement and financial policies that have paved the way for global economic progress. Considering economic globalization an accurate, full, reliable accounting-analytical information on product cost per unit is, apparently, of crucial significance for any enterprise. Only modern methodical-organizational approaches to product costing allow businesses to be better equipped in order to enter a global market and compete in today’s modern world.

The aim of the paper is to examine a set of key shortcomings in the methodical and organizational principles of the cost accounting system at industrial enterprises. It is of crucial importance for identifying the most appropriate and applicable techniques for industrial costing which could be further successfully implemented in industrial production. This research was carried out by employing a rigorous methodology: an extensive body of literature on the subject was critically reviewed to reveal advantages and  drawbacks of modern and traditional techniques of costing, respectively. Moreover  a comparative study of cost management systems of some huge world-known enterprises was conducted to provide evidence of their relevancy. As a result most effective and efficient techniques of product costing are identified to help to improve the cost management system of any industrial enterprise. They are target costing, activity-based costing and just‑in‑time approach.

JEL codes: M11, M41, M1.

Keyword(s): activity-based costing, cost accounting system, cost management system, just in time approach, target costing, technique of costing

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.