Economic Analysis: Theory and Practice

Methods to apply activity-based costing by finance and economic department of the enterprise

Vol. 17, Iss. 7, JULY 2018

Received: 3 April 2018

Received in revised form: 25 April 2018

Accepted: 23 May 2018

Available online: 27 July 2018


JEL Classification: J24, M12

Pages: 1227–1239

Burganov R.A. Kazan State Power Engineering University, Kazan, Republic of Tatarstan, Russian Federation

Kolobynina O.A. Kazan State Power Engineering University, Kazan, Republic of Tatarstan, Russian Federation

Importance The article considers the application of the Activity Based Costing (ABC) method in the operations of the business unit on the Finance Department case.
Objectives The aims are to review the specifics of methodology for applying the ABC analysis in the management of the Finance and Economic Department of the enterprise, study the experience in using the ABC method in the analysis of management of a business unit, examine stages of the analysis, analyze functions of the Department, prepare a functional model of the analyzed object, and determine the significance of the Department's functions.
Methods We employ methods of systematization, comparison, and generalization.
Results The efficiency of applying the Activity Based Costing analysis can be observed in reduced costs and saving the financial resources to support the operations of the Finance and Economic Department. The use of the method is a sort of tool, contributing to the management of processes and measuring the cost of performed works and delivered services.
Conclusions The use of the Activity Based Costing analysis should result in optimization of functions and resources.

Keywords: Activity Based Costing, ABC, Finance and Economic Department, functional model


  1. Gramp E.A. Funktsional'no-stoimostnyi analiz: sushchnost', teoreticheskie osnovy, opyt primeneniya za rubezhom [Activity-based cost analysis: Essence, theoretical bases, experience of application abroad]. Moscow, Informelektro Publ., 1980, 32 p.
  2. Wellenreuther H. Funktsional'no-stoimostnyi analiz v ratsionalizatsii proizvodstva [Aktionsprogramm – Integrierte Leistungsverbesserung durch Wertanalyse]. Moscow, Ekonomika Publ., 1984, 111 p.
  3. Shcherbakov V.A. Metodologiya upravlencheskogo funktsional'no-stoimostnogo analiza dlya predpriyatii transporta [Methodology of managerial ABC analysis for transport enterprises]. Novosibirsk, MAN Publ., 2000, 100 p.
  4. Kibanov A.Ya. Upravlenie mashinostroitel'nym predpriyatiem na osnove funktsional'no-stoimostnogo analiza [Management of machine-building enterprises on the basis of ABC analysis]. Moscow, Mashinostroenie Publ., 1991, 155 p.
  5. Misakov V.S. Metodologiya funktsional'no-stoimostnogo analiza v usloviyakh perekhoda k rynochnoi ekonomike [Methodology of functional-cost analysis under transition to market economy]. Nalchik, El'-Fa Publ., 1995, 188 p.
  6. Misakov V.S. Funktsional'no-stoimostnyi analiz v stroitel'stve [Functional-cost analysis in construction]. Moscow, Finansy i statistika Publ., 1986, 143 p.
  7. Prikhod'ko E.A., Aksenova N.I. [The economic security of the company as a tool for its sustainable development]. Upravlenie ekonomicheskimi sistemami, 2016, no. 12. (In Russ.) URL: Link
  8. Prikhod'ko E.A., Pal'chikova A.P. [Evaluating the region's economic security: Evidence from the Novosibirsk oblast]. Natsional'nye interesy: prioritety i bezopasnost' = National Interests: Priorities and Security, 2017, vol. 13, iss. 7, pp. 1258–1269. (In Russ.) URL: Link

View all articles of issue


ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 17, Iss. 9
September 2018