ANALYSIS AND IMPROVEMENT OF THE PRODUCT COSTING SYSTEM IN THE CONTEXT OF OUTSOURCING THE COMPANY'S BUSINESS PROCESSES

Abstract

The article explores the challenges and proposes solutions for improving the cost calculation system for products (works, services) in the context of business process outsourcing. Outsourcing, as a contemporary organizational strategy, allows businesses to focus on their core activities while delegating non-core functions to specialized third-party providers. This model promotes resource efficiency and operational scalability. However, the integration of outsourcing significantly complicates the accounting processes, particularly cost identification, allocation, and monitoring. Traditional cost calculation approaches, including job order costing, process costing, and operational costing, often fail to adequately address the unique characteristics of outsourced expenses. This gap can result in misrepresented financial data, strategic inefficiencies, and reduced decision-making accuracy. The authors advocate for the adoption of advanced methodologies, such as the Activity-Based Costing approach, which enables organizations to accurately trace costs to specific outsourced business activities. This method offers a clearer view of cost drivers and provides a foundation for more precise financial planning and control. Additionally, the article emphasizes the importance of integrating ERP systems and other automated tools into accounting frameworks. These technologies enhance transparency, ensure the accuracy of financial operations, and facilitate real-time monitoring of cost data. The proposed strategies also include detailing outsourcing-related expenses, establishing provisions for reputational risks, and employing digital analytics to evaluate the performance of outsourcing contracts. The practical significance of this study lies in its potential to assist enterprises in addressing the complexities of cost calculation under outsourcing conditions. By implementing the recommended solutions, businesses can achieve better cost control, improved accuracy in accounting records, and increased efficiency in managerial decision-making. Furthermore, the integration of digital tools and advanced cost management techniques strengthens a company’s ability to adapt to a competitive and dynamic market environment. The study highlights the critical role of accurate cost accounting in enhancing operational efficiency and aligning outsourcing practices with strategic goals. It also underscores the broader implications of cost management on long-term corporate sustainability and stakeholder trust.