INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 02,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 198
ORGANIZING COST AND RESULT ACCOUNTING USING THE DIRECT COSTING
SYSTEM
Murodova Madinabonu Ilkhom kizi
Master's student of Bukhara State University 10-1Bux 24 group
Annotation:
This article examines direct costs and variable indirect expenses involved in
calculating product cost, as well as key issues in improving cost accounting in enterprises.
Keywords:
cost, accounting, International Financial Reporting Standards (IFRS), financial
stability, direct costing, goods sold during the reporting period.
Direct Costing
is a cost accounting system based on dividing a company's total costs into
fixed costs (which do not depend on the amount of production per unit of time) and variable
costs, which change in direct proportion to the quantity of products produced. Only the latter
group—direct costs and variable indirect expenses—are included in the cost calculation of
products. This applies both to the valuation of semi-finished and finished goods when preparing
the final annual balance sheet and to the assessment of costs related to goods sold during the
reporting period. In direct costing, fixed costs are recorded in the profit and loss account.
The introduction of direct costing has solved two key problems:
1. Eliminating the effect of production volume changes on the unit cost of manufactured
products.
2. Determining the product selection for production based on the portion of fixed costs it
covers rather than the difference between price and full cost.
The direct costing technique is adapted to specific economic conditions, such as slowing
economic growth and underutilization of production factors. In such situations, enterprise
managers focus more on controlling variable costs than fixed ones since fixed costs remain at a
relatively low and stable level and increase only with production expansion. The growth period
of fixed costs is longer than economic upturns, making variable cost analysis more relevant
during economic crises.
To address such problems, simple direct costing is used, based only on operating
(overhead) costs. In this system, only variable costs are allocated to finished products, while
fixed costs are entirely charged to the results of the reporting period in which they occurred. The
company's total revenue from product sales is reduced by variable production and sales costs,
yielding an intermediate result known as the
contribution margin
.
Using contribution margin allows for the expansion of traditional management decision-
making tools. Simple direct costing serves as the initial and classical form of the system, where
fixed costs are accounted for as a single, undivided block. In a single-step cost accounting
system, all fixed costs combined in one block are deducted from the total contribution margin of
the reporting period.
Principles of Simple Direct Costing:
Costs are classified into fixed and variable based on production volume.
The cost of manufactured and sold products is calculated only based on variable
(operating) costs.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 02,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 199
The difference between variable cost and selling price is compared, known as the
variable cost margin.
Fixed costs are covered by various contribution margins to determine the financial
performance and profitability of enterprises.
Simple direct costing is suitable for enterprises with low production volumes and a limited
range of products.
Advanced Direct Costing:
Advanced direct costing retains all the advantages of simple direct costing while addressing its
limitations by considering the specific nature of fixed costs linked to certain products. In multi-
step fixed cost allocation, instead of distributing fixed costs among individual cost carriers, they
are allocated across a general product category, cost centers, or business divisions.
In modern management accounting, fixed costs are categorized as follows:
1.
Fixed product costs
– directly related to the total volume of a specific product produced
over a given period (e.g., development costs or maintenance costs for specialized
equipment).
2.
Fixed product group costs
– incurred for multiple similar products within the same
group but not allocated to individual items (e.g., capital costs for machinery used in
producing a group of products or research costs for product group development).
3.
Fixed cost center expenses
– not allocated among individual product groups but directly
assigned to cost centers.
4.
Fixed divisional expenses
– arise due to the existence of multiple cost centers within a
division or the division itself and are covered by the total contribution margin of all
products produced by that division.
5.
Enterprise-wide fixed expenses
– costs that cannot be assigned to specific cost objects,
such as general corporate management expenses.
Advanced direct costing differentiates not only variable but also fixed costs, determining
contribution margins by product type, production location, and sales region.
Key Features of Advanced Direct Costing:
Introduction of specific direct fixed costs to regulate production volume, cost calculation,
and pricing.
Calculation of contribution margins by external segments outside the enterprise,
incorporating marketing principles into management accounting.
A hierarchical (multi-step) cost calculation system using variable cost data and specific
direct fixed costs.
This method ensures continuous focus on the final business outcome—profitability—by
determining contribution margin at the enterprise level and for individual products, services, and
market segments.
Literature:
1.
Алимова, Ш. А., & Шадиев, А. Х. (2025). РОЛЬ ЦИФРОВОЙ ЭКОНОМИКИ В
РАЗВИТИИ УЗБЕКИСТАНА: АНАЛИЗ ЗА 2021–2024 ГОДЫ. THEORY OF
SCIENTIFIC RESEARCHES OF WHOLE WORLDT, 1(3), 245-252.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 02,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 200
2.
Алимова, Ш. А., & Шадиев, А. Х. (2025). СОВРЕМЕННЫЕ ЭКОНОМИЧЕСКИЕ
ТЕНДЕНЦИИ
В
УЗБЕКИСТАНЕ:
АНАЛИЗ
ДАННЫХ
И
ПЕРСПЕКТИВЫ. STUDYING THE PROGRESS OF SCIENCE AND ITS
SHORTCOMINGS, 1(4), 205-211.
3.
Алимова, Ш. А., & Тошов, М. Х. (2025). БЮДЖЕТНЫЙ ДЕФИЦИТ И
ГОСУДАРСТВЕННЫЙ ДОЛГ: СТРАТЕГИИ УПРАВЛЕНИЯ В СОВРЕМЕННЫХ
УСЛОВИЯХ. ANALYSIS OF MODERN SCIENCE AND INNOVATION, 1(4), 142-149.
4.
Алимова, Ш. А., & Тошов, М. Х. (2025). ВЛИЯНИЕ ГЛОБАЛИЗАЦИИ НА
ЭКОНОМИЧЕСКОЕ РАЗВИТИЕ СТРАН: ВЫЗОВЫ И ПЕРСПЕКТИВЫ. MODERN
EDUCATIONAL SYSTEM AND INNOVATIVE TEACHING SOLUTIONS, 1(5), 86-92.
5.
Azimov, B. F., & Qudratova, G. M. (2025). OZBEKISTONDA INNOVASION
FAOLIYATNI
MOLIYALASHTIRISH
STRATEGIYASI
VA
UNI
TAKOMILLASHTIRISH. THEORY OF SCIENTIFIC RESEARCHES OF WHOLE
WORLDT, 1(4), 36-45.
6.
Azimov, B. F., & Qudratova, G. M. (2025). INNOVATSION FAOLIYATNI QO ‘LLAB-
QUVVATLASHNING YEVROPA MAMLAKATLARI TAJRIBALARI. ANALYSIS OF
MODERN SCIENCE AND INNOVATION, 1(5), 35-44.
7.
Azimov, B. F., & Qudratova, G. M. (2025). KICHIK BIZNES VA XUSUSIY
TADBIRKORLIK SOHASIDAGI IJTIMOIY VA IQTISODIY HOLAT, HUDUDDA
SANOATNI RIVOJLANTIRISHNING ISTIQBOLLARI. STUDYING THE PROGRESS
OF SCIENCE AND ITS SHORTCOMINGS, 1(5), 23-30.
8.
Azimov, B. F., & Qudratova, G. M. (2025). ISPANIYADA INNOVATSIYALARNI QO
‘LLAB-QUVVATLASH SOHASIDAGI ILG ‘OR TAJRIBALAR. THEORY OF
SCIENTIFIC RESEARCHES OF WHOLE WORLDT, 1(4), 24-35.
9.
Azimov, B. F., & Qudratova, G. M. (2025). OLIY TA’LIM MUASSASALARINING
INNOVATSION FAOLLIGINI OSHIRISH MINTAQANI IJTIMOIY VA IQTISODIY
YUKSALTIRISH GAROVI SIFATIDA. THEORY OF SCIENTIFIC RESEARCHES OF
WHOLE WORLDT, 1(4), 46-54.
10.
Azimov, B. F., & Qudratova, G. M. (2025). INNOVATSIYALARNI QO ‘LLAB-
QUVVATLASHNING
TASHKILIY
TUZILMALARI:
INFRATUZILMAVIY
TASHKILOTLAR. ANALYSIS OF MODERN SCIENCE AND INNOVATION, 1(5), 25-
34.
11.
Azimov, B. F., Maksudovich, A. Z., & Qudratova, G. M. (2025). INNOVATIVE ACTIVITY
AS A FACTOR IN ECONOMIC DEVELOPMENT. Ethiopian International Journal of
Multidisciplinary Research, 12(01), 453-459.
12.
Sodiqova, N. T., & Bobojonova, M. J. (2025). MАMАLАKАT ІQTІSОDІУОTІNІ
RІVОJLАNTІRІSHDА XАLАQАRО TURІZІM О’RNІNІNG ІQTІSОDІУ MАZMUNІ
VА АHАMІУАTІ. STUDYING THE PROGRESS OF SCIENCE AND ITS
SHORTCOMINGS, 1(5), 66-75.
13.
Sodiqova, N. T., & Xalilov, B. B. (2025). PUL-KREDIT SIYOSATINI AMALGA
OSHIRISHNING USUL VA MEXANIZMLARI (INFLYATSION TARGETLASH
REJIMIGA O ‘TISHNING AHAMIYATI). MODERN PROBLEMS IN EDUCATION AND
THEIR SCIENTIFIC SOLUTIONS, 1(5), 87-96.
14.
Sodiqova, N. T., & Bobojonova, M. J. (2025). YIRIK KORXONALARDA INSON
KAPITALINING O'ZIGA XOS XUSUSIYATLARI. MODERN EDUCATIONAL
SYSTEM AND INNOVATIVE TEACHING SOLUTIONS, 1(6), 127-137.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 02,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 201
15.
Sodiqova, N. T., & Khalilov, B. B. (2025). SUSTAINABLE DEVELOPMENT GOALS:
TOURISM'S CONTRIBUTION TO A SUSTAINABLE FUTURE AND SUPPORTING
TOURISM INDUSTRY BY THE TOOLS OF MARKETING. ANALYSIS OF MODERN
SCIENCE AND INNOVATION, 1(5), 87-97.
16.
Sodiqova, N. T., & Bobojonova, M. J. (2025). OLIY TA'LIM MUASSASALARIDA
KADRLAR SIFATINI BAHOLASH. ANALYSIS OF MODERN SCIENCE AND
INNOVATION, 1(5), 109-120.
17.
Sodiqova, N. T., & Bobojonova, M. J. (2025). MEHNAT UNUMDORLIGINI TAHLIL
QILISHNING NAZARIY MUAMMOLARI. THEORY OF SCIENTIFIC RESEARCHES
OF WHOLE WORLDT, 1(4), 55-67.
18.
Sodiqova, N. T., & Bobojonova, M. J. (2025). MAKROIQTISODIY BARQARORLIK VA
RIVOJLANISHNI TA’MINLASHDA PUL-KREDIT SIYOSATINING O ‘RNI. MODERN
PROBLEMS IN EDUCATION AND THEIR SCIENTIFIC SOLUTIONS, 1(5), 106-115.
19.
Sodiqova, N. T., & Khalilov, B. B. (2025). MARKETING–THE TASKS AT A
GLANCE.
STUDYING
THE
PROGRESS
OF
SCIENCE
AND
ITS
SHORTCOMINGS, 1(5), 76-85.
20.
Sodiqova, N. T., & Xalilov, B. B. (2025). KORXONA FOYDASINING TAQSIMLANISHI
VA ISHLATILISHI. STUDYING THE PROGRESS OF SCIENCE AND ITS
SHORTCOMINGS, 1(5), 55-65.
21.
Bobojonova, M. J., & Sodiqova, N. T. (2025). YASHIL IQTISODIYOTNI
RIVOJLANTIRISH
DARAJASI
VA
UNING
ISTIQBOLLI
YO
‘NALISHLARI.
STUDYING
THE
PROGRESS
OF
SCIENCE
AND
ITS
SHORTCOMINGS, 1(5), 172-181.
22.
Hakimovich, T. M. (2025). EKSPORTCHI KORXONALARNI QO ‘LLAB-
QUVVATLASH USULLARI VA VOSITALARI. ANALYSIS OF MODERN SCIENCE
AND INNOVATION, 1(4), 213-224.
23.
Hakimovich,
T.
M.
(2025).
EKSPORT
QILUVCHI
KORXONALAR
RAQOBATBARDOSHLIGINING NAZARIY TAHLILI. THEORY OF SCIENTIFIC
RESEARCHES OF WHOLE WORLDT, 1(3), 137-148.
24.
Hakimovich,
T.
M.
(2025).
STRATEGIYA–HUDUDLAR
IQTISODIYOTINI
RIVOJLANTIRISHNING ASOSIY OBYEKTI SIFATIDA. ANALYSIS OF MODERN
SCIENCE AND INNOVATION, 1(4), 276-283.
25.
Hakimovich, T. M. (2025). О ‘ZBEKISTОN IQTISОDIYОTNI IJTIMОIY-IQTISОDIY
RIVОJLANISH DINAMIKASI. THEORY OF SCIENTIFIC RESEARCHES OF WHOLE
WORLDT, 1(3), 224-233.
26.
Bahodirovich, X. B. (2025). ON THE BASIS OF INTERNATIONAL STANDARDS OF
FINANCIAL REPORTING IN FINANCIAL REPORTING PROCEDURE IN
UZBEKISTAN. Ethiopian International Journal of Multidisciplinary Research, 12(01), 151-
157.
27.
Bakhodirovich, K. B. (2023). CONCEPTUAL FOUNDATIONS OF IMPROVING
ACCOUNTING IN SMALL BUSINESS AND PRIVATE ENTREPRENEURSHIP. IMRAS,
6 (6), 161–165.
28.
Bahodirovich, K. B., & Mahmudovna, Q. G. (2025). TYPES OF CREDIT
PRODUCTS. THEORY OF SCIENTIFIC RESEARCHES OF WHOLE WORLDT, 1(3),
269-277.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 02,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 202
29.
Ibodulloyevich, I. E. (2024). O ‘ZBEKISTON RESPUBLIKASIDA KICHIK BIZNES VA
XUSUSIY TADBIRKORLIK SAMARADORLIGINI OSHIRISH MUAMMOLARI VA
ISHBILARMONLIK MUHITINI YAXSHILASH ISTIQBOLLARI. Gospodarka i
Innowacje., 51, 258-266.
30.
EI, I. (2024). MAKROIQTISODIY KO ‘RSATKICHLARNNG O ‘ZIGA XOS
XUSUSIYATLARI. MODERN PROBLEMS IN EDUCATION AND THEIR SCIENTIFIC
SOLUTIONS, 1(3), 275-281.
31.
Raxmonqulova, N., & Muxammedov, T. (2025). HUDUDNING STRATEGIK IJTIMОIY-
IQTISОDIY SIYОSATINI BAHОLASH: METОDОLOGIK YОNDASHUV. Modern
Science and Research, 4(1), 918-921.
32.
Raxmonqulova, N. O. (2025). TASHKILOTDA INNOVATSION YONDASHUVLARNI
BOSHQARISHNING AHAMIYATI. The latest pedagogical and psychological innovations
in education, 2(1), 15-21.
33.
Raxmonqulova,
N.
O.
(2025).
TASHKILOTNING
XALQARO
BOZORDA
MUVAFFAQIYATLI FAOLIYAT YURITISH USULLARI. The latest pedagogical and
psychological innovations in education, 2(1), 8-14.
34.
Raxmonqulova, N. O. (2025). KORXONALARDA YUZAGA KELADIGAN INQIROZ
HOLATLARI VA ULARNI BOSHQARISH STRATEGIYALARI. The latest pedagogical
and psychological innovations in education, 2(1), 1-7.
35.
Abdivayitovna, S. U., & Azimov, B. F. (2025). IMPROVING THE EFFICIENCY OF
USING MATERIAL AND TECHNICAL RESOURCES IN ENTERPRISES. Ethiopian
International Journal of Multidisciplinary Research, 12(01), 223-228.
36.
Akbarovna, N. N. (2025). BYUDJET TIZIMINI ISLOH QILISHNING ASOSIY YO
‘NALISHLARI. MODERN PROBLEMS IN EDUCATION AND THEIR SCIENTIFIC
SOLUTIONS, 1(5), 80-86.
37.
Akbarovna, N. N. (2025). MAIN TRENDS IN THE DEVELOPMENT OF MODERN
MANAGEMENT TECHNOLOGIES. FARS International Journal of Education, Social
Science & Humanities., 13(1), 242-249.
38.
Akbarovna, N. N. (2025). MENEJER FAOLIYATINING FUNKSIONAL VAZIFALARI
VA UNING MADANIYATINING AHAMIYATI. MODERN PROBLEMS IN
EDUCATION AND THEIR SCIENTIFIC SOLUTIONS, 1(4), 354-362.
39.
Bobojonova, M. J., & Naimova, N. A. (2024). O’ZBEKISTONDA FRILANSERLIK VA
AUTSORSERLIKNING RIVOJLANISH DARAJASI. ANALYSIS OF MODERN
SCIENCE AND INNOVATION, 1(3), 72-77.
40.
Bostonovna, D. Z. (2023). CONCEPTUAL BASIS OF IMPROVEMENT OF BANK
AUDIT IN COMMERCIAL BANKS. IMRAS, 6(6), 118-124.
41.
Bustonovna, J. Z. (2024). O'ZBEKISTON IQTISODIYOTINING BARQAROR O'SISHIDA
SANOAT TARMOQLARINING AHAMIYATI.
42.
Bazarova, M. (2023). EFFECTIVENESS OF USING PR-ADVERTISING SERVICES IN
THE PROCESS OF PRODUCT DELIVERY ON THE EXAMPLE OF BUKHARA
REGION. Modern Science and Research, 2(12), 506-512.
43.
Supiyevna, B. M. (2023). TIJORAT BANKLARI FAOLIYATIDA PERSONALNI
BOSHQARISHNING O ‘ZIGA XOS XUSUSIYATLARI. Gospodarka i Innowacje., 42,
409-414.
44.
Базарова, М. С. (2020). Развитие внимания дошкольников посредством дидактических
игр. In Исследования молодых ученых (pp. 37-40).
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 02,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 203
45.
Jumayeva, Z. Q. (2025). ISSUES OF IMPROVING THE METHODOLOGY OF
COMPETITION ASSESSMENT IN THE BANKING SERVICES MARKET OF THE
REPUBLIC
OF
UZBEKISTAN.
AMERICAN
JOURNAL
OF
BUSINESS
MANAGEMENT, 3(1), 41-49.
46.
Авезова, Ш. М., & Жумаева, З. К. (2013). МЕХАНИЗМЫ УСТОЙЧИВОГО
РАЗВИТИЯ НАЦИОНАЛЬНОЙ ЭКОНОМИКИ УЗБЕКИСТАНА. СЕКЦІЯ 1.
Економіка і управління національним господарством............... 9, 12.
47.
Примова, А. А., Усманова, Н. Ю., & Жумаева, З. К. (2013). НЕКОТОРЫЕ АСПЕКТЫ
ИННОВАЦИОННОГО РАЗВИТИЯ АГРАРНОЙ ОТРАСЛИ УЗБЕКИСТАНА.
In ЕКОНОМІКА І УПРАВЛІННЯ: ПРОБЛЕМИ НАУКИ ТА ПРАКТИКИ (pp. 199-202).
48.
AD, S., & To’rayevich, I. A. (2025). QISHLOQ XO’JALIGINI HUDUDLASHTIRISH VA
IXTISOSLASHTIRISHNING ILMIY
ASOSLARI. MODERN PROBLEMS IN
EDUCATION AND THEIR SCIENTIFIC SOLUTIONS, 1(5), 51-63.
49.
AD, S., & To’rayevich, I. A. (2025). QISHLOQ XO’JALIGIDA ISHLAB CHIQARISH
SAMARADORLIGINI OSHIRISH OMILLARI. MODERN EDUCATIONAL SYSTEM
AND INNOVATIVE TEACHING SOLUTIONS, 1(6), 34-43.
50.
To’rayevich, I. A., & AD, S. (2025). O ‘ZBEKISTON IQTISODIYOTIGA
INVESTITSIYALARNI
SOLIQ
MEXANIZMLARI
ASOSIDA
JALB
QILISH
IMKONIYATLARI. MODERN EDUCATIONAL SYSTEM AND INNOVATIVE
TEACHING SOLUTIONS, 1(6), 44-57.
51.
AD, S., & To’rayevich, I. A. (2025). QISHLOQ XO’JALIGINING CHO’L
YALOVLARIDA HUDUDLASHTIRISHNI AMALGA OSHIRISH TARTIBINI ISHLAB
CHIQISH. ANALYSIS OF MODERN SCIENCE AND INNOVATION, 1(5), 55-67.
52.
AD, S., & To’rayevich, I. A. (2025). O’ZBEKISTON RESPUBLIKASI VA XORIJIY
MAMLAKATLARDA
QISHLOQ
XO’JALIGIDA
IXTISOSLASHTIRISHNING
AMALGA OSHIRILAYOTGAN ISLOHATLARI BILAN TANISHISH. MODERN
EDUCATIONAL SYSTEM AND INNOVATIVE TEACHING SOLUTIONS, 1(6), 70-81.
53.
To’rayevich, I. A., & AD, S. (2025). MILLIY IQTISODIYOTIGA XORIJIY
INVESTITSIYALARNI
JALB
QILISHNI
SOLIQLAR
VOSITASIDA
RAG
‘BATLANTIRISH ISTIQBOLLARI. ANALYSIS OF MODERN SCIENCE AND
INNOVATION, 1(5), 13-24.
54.
Sadilloyevna, D. M. (2025). Prospects for Investments in Modernization of the Economy in
the Agricultural Sector. Ethiopian International Journal of Multidisciplinary Research, 12(01),
217-222.
55.
Джураева, М. С., & Алимова, Ш. А. (2025). АНАЛИЗ ТОЧКИ БЕЗУБЫТОЧНОСТИ И
МАРЖИНАЛЬНОЙ ПРИБЫЛИ. STUDYING THE PROGRESS OF SCIENCE AND ITS
SHORTCOMINGS, 1(4), 88-94.
56.
Алимова, Ш. А., & Джураева, М. С. (2025). ИНВЕСТИЦИОННЫЕ ПРОЕКТЫ:
УПРАВЛЕНИЕ И ЭФФЕКТИВНОСТЬ. STUDYING THE PROGRESS OF SCIENCE
AND ITS SHORTCOMINGS, 1(4), 81-87.
