A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs

Kulikova Tatyana Andreevna; Kirikutsa Elena Gennadievna; Sinyavin Vladimir Yurievich; Bareeva Irkyam Adgamovna

doi:doi:10.11648/j.eco.20231203.12

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A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs

Kulikova Tatyana Andreevna, Kirikutsa Elena Gennadievna, Sinyavin Vladimir Yurievich, Bareeva Irkyam Adgamovna

Published in Economics (Volume 12, Issue 3)

Received: 5 May 2023 Accepted: 19 July 2023 Published: 1 September 2023

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Abstract

Improvement of cost management methods is an urgent problem nowadays due to increasing size and share of overhead costs of enterprises in modern conditions. This paper proposes a methodical approach to overhead cost management to find a compromise between cost optimization and differentiation in terms of developing flexible standards that are connected with strategies and specific operating conditions of economic entities. The implementation of these tasks is based on studying the experience of applying and clarifying the category of overhead cost rationing, based on neoclassical and alternative evolutionary economic theories, the economy of the firm to calculate the overhead rate, and econometric methods for analyzing the cost factors of industrial enterprises. A developmental component of overhead costs was first distinguished in the proposed methodical approach. An algorithm to determine the effectiveness of the overhead cost standard factor in terms of compliance with the objectives of the enterprise has been developed. Practical recommendations for optimizing and using the features of the overhead cost standard factor to increase the efficiency of industrial enterprises have been offered. The use of the proposed methodological approach to standardizing overhead costs as a structural component of cost management systems based on norms will increase the reliability of implementing its following stages, develop well-founded norms that are adequate to the various goals of economic entities, focus attention on overhead costs, improve managerial accounting for economic entities, conduct flexible managerial policies, and productively carry out the managerial process.

Published in	Economics (Volume 12, Issue 3)
DOI	10.11648/j.eco.20231203.12
Page(s)	93-104
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Overhead Costs, Cost Management, Rationing, Standard Factor of Overhead Costs, Goal Setting, Innovation

References

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Kulikova Tatyana Andreevna, Kirikutsa Elena Gennadievna, Sinyavin Vladimir Yurievich, Bareeva Irkyam Adgamovna. (2023). A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs. Economics, 12(3), 93-104. https://doi.org/10.11648/j.eco.20231203.12

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Kulikova Tatyana Andreevna; Kirikutsa Elena Gennadievna; Sinyavin Vladimir Yurievich; Bareeva Irkyam Adgamovna. A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs. Economics. 2023, 12(3), 93-104. doi: 10.11648/j.eco.20231203.12

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Kulikova Tatyana Andreevna, Kirikutsa Elena Gennadievna, Sinyavin Vladimir Yurievich, Bareeva Irkyam Adgamovna. A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs. Economics. 2023;12(3):93-104. doi: 10.11648/j.eco.20231203.12

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@article{10.11648/j.eco.20231203.12,
  author = {Kulikova Tatyana Andreevna and Kirikutsa Elena Gennadievna and Sinyavin Vladimir Yurievich and Bareeva Irkyam Adgamovna},
  title = {A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs},
  journal = {Economics},
  volume = {12},
  number = {3},
  pages = {93-104},
  doi = {10.11648/j.eco.20231203.12},
  url = {https://doi.org/10.11648/j.eco.20231203.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20231203.12},
  abstract = {Improvement of cost management methods is an urgent problem nowadays due to increasing size and share of overhead costs of enterprises in modern conditions. This paper proposes a methodical approach to overhead cost management to find a compromise between cost optimization and differentiation in terms of developing flexible standards that are connected with strategies and specific operating conditions of economic entities. The implementation of these tasks is based on studying the experience of applying and clarifying the category of overhead cost rationing, based on neoclassical and alternative evolutionary economic theories, the economy of the firm to calculate the overhead rate, and econometric methods for analyzing the cost factors of industrial enterprises. A developmental component of overhead costs was first distinguished in the proposed methodical approach. An algorithm to determine the effectiveness of the overhead cost standard factor in terms of compliance with the objectives of the enterprise has been developed. Practical recommendations for optimizing and using the features of the overhead cost standard factor to increase the efficiency of industrial enterprises have been offered. The use of the proposed methodological approach to standardizing overhead costs as a structural component of cost management systems based on norms will increase the reliability of implementing its following stages, develop well-founded norms that are adequate to the various goals of economic entities, focus attention on overhead costs, improve managerial accounting for economic entities, conduct flexible managerial policies, and productively carry out the managerial process.},
 year = {2023}
}

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TY  - JOUR
T1  - A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs
AU  - Kulikova Tatyana Andreevna
AU  - Kirikutsa Elena Gennadievna
AU  - Sinyavin Vladimir Yurievich
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N1  - https://doi.org/10.11648/j.eco.20231203.12
DO  - 10.11648/j.eco.20231203.12
T2  - Economics
JF  - Economics
JO  - Economics
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PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20231203.12
AB  - Improvement of cost management methods is an urgent problem nowadays due to increasing size and share of overhead costs of enterprises in modern conditions. This paper proposes a methodical approach to overhead cost management to find a compromise between cost optimization and differentiation in terms of developing flexible standards that are connected with strategies and specific operating conditions of economic entities. The implementation of these tasks is based on studying the experience of applying and clarifying the category of overhead cost rationing, based on neoclassical and alternative evolutionary economic theories, the economy of the firm to calculate the overhead rate, and econometric methods for analyzing the cost factors of industrial enterprises. A developmental component of overhead costs was first distinguished in the proposed methodical approach. An algorithm to determine the effectiveness of the overhead cost standard factor in terms of compliance with the objectives of the enterprise has been developed. Practical recommendations for optimizing and using the features of the overhead cost standard factor to increase the efficiency of industrial enterprises have been offered. The use of the proposed methodological approach to standardizing overhead costs as a structural component of cost management systems based on norms will increase the reliability of implementing its following stages, develop well-founded norms that are adequate to the various goals of economic entities, focus attention on overhead costs, improve managerial accounting for economic entities, conduct flexible managerial policies, and productively carry out the managerial process.
VL  - 12
IS  - 3
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Author Information

Kulikova Tatyana Andreevna

The Department of Economics and Management, I. M. Sechenov First Moscow State Medical University (Sechenov University), Moscow, Russian Federation
Kirikutsa Elena Gennadievna

The Department of Economics and Management, I. M. Sechenov First Moscow State Medical University (Sechenov University), Moscow, Russian Federation
Sinyavin Vladimir Yurievich

The Department of Management and Economic Security, Penza State University, Penza, Russian Federation
Bareeva Irkyam Adgamovna

The Department of Management and Economic Security, Penza State University, Penza, Russian Federation

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Kulikova Tatyana Andreevna, Kirikutsa Elena Gennadievna, Sinyavin Vladimir Yurievich, Bareeva Irkyam Adgamovna. (2023). A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs. Economics, 12(3), 93-104. https://doi.org/10.11648/j.eco.20231203.12

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ACS Style

Kulikova Tatyana Andreevna; Kirikutsa Elena Gennadievna; Sinyavin Vladimir Yurievich; Bareeva Irkyam Adgamovna. A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs. Economics. 2023, 12(3), 93-104. doi: 10.11648/j.eco.20231203.12

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AMA Style

Kulikova Tatyana Andreevna, Kirikutsa Elena Gennadievna, Sinyavin Vladimir Yurievich, Bareeva Irkyam Adgamovna. A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs. Economics. 2023;12(3):93-104. doi: 10.11648/j.eco.20231203.12

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@article{10.11648/j.eco.20231203.12,
  author = {Kulikova Tatyana Andreevna and Kirikutsa Elena Gennadievna and Sinyavin Vladimir Yurievich and Bareeva Irkyam Adgamovna},
  title = {A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs},
  journal = {Economics},
  volume = {12},
  number = {3},
  pages = {93-104},
  doi = {10.11648/j.eco.20231203.12},
  url = {https://doi.org/10.11648/j.eco.20231203.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20231203.12},
  abstract = {Improvement of cost management methods is an urgent problem nowadays due to increasing size and share of overhead costs of enterprises in modern conditions. This paper proposes a methodical approach to overhead cost management to find a compromise between cost optimization and differentiation in terms of developing flexible standards that are connected with strategies and specific operating conditions of economic entities. The implementation of these tasks is based on studying the experience of applying and clarifying the category of overhead cost rationing, based on neoclassical and alternative evolutionary economic theories, the economy of the firm to calculate the overhead rate, and econometric methods for analyzing the cost factors of industrial enterprises. A developmental component of overhead costs was first distinguished in the proposed methodical approach. An algorithm to determine the effectiveness of the overhead cost standard factor in terms of compliance with the objectives of the enterprise has been developed. Practical recommendations for optimizing and using the features of the overhead cost standard factor to increase the efficiency of industrial enterprises have been offered. The use of the proposed methodological approach to standardizing overhead costs as a structural component of cost management systems based on norms will increase the reliability of implementing its following stages, develop well-founded norms that are adequate to the various goals of economic entities, focus attention on overhead costs, improve managerial accounting for economic entities, conduct flexible managerial policies, and productively carry out the managerial process.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - A Methodical Approach to Optimization and Application of a Standard Factor of Overhead Costs
AU  - Kulikova Tatyana Andreevna
AU  - Kirikutsa Elena Gennadievna
AU  - Sinyavin Vladimir Yurievich
AU  - Bareeva Irkyam Adgamovna
Y1  - 2023/09/01
PY  - 2023
N1  - https://doi.org/10.11648/j.eco.20231203.12
DO  - 10.11648/j.eco.20231203.12
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 93
EP  - 104
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20231203.12
AB  - Improvement of cost management methods is an urgent problem nowadays due to increasing size and share of overhead costs of enterprises in modern conditions. This paper proposes a methodical approach to overhead cost management to find a compromise between cost optimization and differentiation in terms of developing flexible standards that are connected with strategies and specific operating conditions of economic entities. The implementation of these tasks is based on studying the experience of applying and clarifying the category of overhead cost rationing, based on neoclassical and alternative evolutionary economic theories, the economy of the firm to calculate the overhead rate, and econometric methods for analyzing the cost factors of industrial enterprises. A developmental component of overhead costs was first distinguished in the proposed methodical approach. An algorithm to determine the effectiveness of the overhead cost standard factor in terms of compliance with the objectives of the enterprise has been developed. Practical recommendations for optimizing and using the features of the overhead cost standard factor to increase the efficiency of industrial enterprises have been offered. The use of the proposed methodological approach to standardizing overhead costs as a structural component of cost management systems based on norms will increase the reliability of implementing its following stages, develop well-founded norms that are adequate to the various goals of economic entities, focus attention on overhead costs, improve managerial accounting for economic entities, conduct flexible managerial policies, and productively carry out the managerial process.
VL  - 12
IS  - 3
ER  -

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