SPECIFICS OF ABC-METHOD APPLICATION IN TRANSPORT COMPANIES

Abstract

Production cost accounting has always been relevant but within intense competition and modernization of Russian economy it has acquired considerable importance. The market implies the desire of companies to profit not by increasing the price of the proposed products, works or services but by reducing the cost of production, which sets the need for the utmost accurate cost accounting and operational control over costs.

Today, one of the mostly used methods applied for these purposes is the method of Activity-based costing (ABC-method). The article presents organizational and methodical recommendations for transport companies when applying the ABC method. The study and analysis of various authors’ opinions related to this method allowed us to identify its main characteristics, advantages and disadvantages, which were taken into account while developing recommendations. The study of transport companies’ practical activities has shaped the basis for the provision of sectoral specifics and particular characteristics of road transport services types. Thus, they were taken into account when selecting the operation driver. Based on the example of a particular company, the article presented the indirect costs allocation alternative, which led to the conclusion concerning the viability of the ABC method applied only to determine the financial result of the types of services and to use this information in calculating the lower level of the service price as well as justifying the need to integrate the ABC method with other cost accounting methods applied by transport companies.