COST MANAGEMENT BASED ON THE ASSESSMENT OF ACTIVITIES AT THE RAILWAY TRANSPORT ENTERPRISE
Keywords:
railway enterprise, cost management, overhead transportation costsAbstract
The paper presents a study of the approach to cost accounting, referred to in the article as cost management on the basis of activity assessment, at the railway transport enterprise. The approach is an effective method to improve the quality of services provided by certain railroad companies operating regionally or internationally. It is an advanced method of management, which eliminates the inaccuracies and shortcomings of the traditional costing system. Significant changes in activity-based cost management, as opposed to standard costing methods, lie primarily in the way overhead cost units are assigned to certain activities based on actual cause-effect relationships, after which the activities themselves are assigned to the appropriate cost items based on the intensity of their consumption. Thus, this approach allows decision makers at the enterprise to identify cost items in terms of determining how to manage them.
The purpose of the work is to develop a specific study of the application of the method of cost management on the basis of the assessment of activities, including a description of the stages of the procedure of the approach, relevant quantitative indicators and the generalization of the obtained results.
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