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International Accounting
 

Intermediate function costing: The IT function case

Vol. 20, Iss. 21, NOVEMBER 2017

PDF  Article PDF Version

Received: 15 May 2017

Received in revised form: 14 July 2017

Received in final form: 4 September 2017

Accepted: 5 October 2017

Available online: 15 November 2017

Subject Heading: Managerial accounting

JEL Classification: M41

Pages: 1224–1242

https://doi.org/10.24891/ia.20.21.1224

Panakhov A.U. IT-tsentr Rybasova, Rostov-on-Don, Russian Federation
Andrey.panakhov@gmail.com

Subject The article describes a functional approach to calculating the costs of an organization, as the possible basis for developing new mechanisms for cost accounting and management systems building.
Objectives The article aims to theoretically justify the activity-based accounting and costing, and develop proposals for an applied methodology for intermediate function costing (IT-function), taking into account the current level of development of broad accounting practices.
Methods For the study, I used comprehensive and systems approaches, analysis, synthesis, induction, and deduction. As well, I applied the cost centers accounting techniques, cost allocation methods, and standard costing methods.
Results The intermediate function is considered to be a separate calculus object in management accounting. The article offers an IT-function costing method and presents activity-based costing records in tabular database format.
Conclusions and Relevance Functional calculus can be implemented with varying degrees of complexity, depending on the management needs. The results obtained can be applied in accounting, analysis and management practices, in the teaching of accounting disciplines and business analysis, in research to further develop the theory and methodology of accounting.

Keywords: management accounting, cost accounting, calculation object, activity-based accounting, functional analysis

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