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The Concept of Cost in the Context of Analyzing Production Costs for Some Works in Industrial Institutions in Iraq (Case Study)

Heyder G. Wannes Alkarawy, Olga Leonidovna Ostrovskaia, Osipov A. Mikail


The problems that are faced of manufacturing enterprises are highlighted in the pursuit of a stable competitive advantage in the corporate world. The role of accounting functions are considered in maintaining the competitive advantages of manufacturing enterprises, the problems of the implementation of the main functions of accounting. The article aims to give a general idea of the consequences of the transfer of individual business functions to external structures. According to the established methods, experimental evidence is presented for changes in financial accounts of manufacturing enterprises statements when outsourcing is used in the implementation of individual business functions according to the accounting rules. When introducing a system of analytical accounting of responsibility centers, for the purpose of preparing decisions on the transfer of accounting for outsourcing costs, it is proposed to introduce an additional center of responsibility “Outsourcing Center” into the accounting system. To implement this purpose and, in particular, must be allocated a sub-account is designed to calculate the cost of outsourcing and in order to improve the accounting, it has been proposed for the structure of the sub-accounts and analytical accounts of administrative expense. Thus, difficulty of accounting and measuring administrative expenses will not be a reason to ignore them when making management decisions on accounting. The results indicated that the application of the recommended system will improve the quality of accounting information and its use will facilitate the adoption of the right management decisions by all management bodies of the company. It requires features that focus on finding and realizing the capabilities of the institutions that guarantee their development and stay in an accounting framework that suits their work.


According, Outsourcing, Outsourcing center, Operating costs, Transaction costs.

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