Cost Calculation and Pricing in the Business Management Context: The Accounting and Control Support

Abstract

The article reveals theoretical and methodological principles of cost accounting, cost calculation and pricing policy formation of business entities with an emphasis on the specifics of the restaurant business. The relationship between the fundamental economic categories of value, price and cost is shown; the planning, analytical, control and cost calculation functions of costs are revealed. It is demonstrated that the set prices are a key factor in the competitive struggle and influence on the financial results and financial condition of the enterprise. Taking into account the influence of certain factors, the business entity is advised to set an optimal level of prices for products (goods, works, services), in order to get the expected profit. The features specific to pricing in the restaurant industry are outlined, stemming from to the combination of production, trade and service functions, dynamic fluctuations in input prices, and direct contacts with the end consumer. Internal and external factors of pricing and methods of pricing are systematized. The expediency of flexible pricing strategies is substantiated. A seven-phase procedure for setting up the accounting policy for costing and pricing in the restaurant business is proposed: assessing the activities of the business entity, determining accounting and costing methods, choosing accounting methods, determining pricing methods, fixing the selected policy in internal documents, determining control procedures, reviewing and adjusting the accounting policy provisions with reference to uncertainty and increasing risks. The use of this algorithm in accounting policy setting will allow restaurant businesses to effectively manage costs, adapt pricing policy to dynamic market conjunctures, and to ensure long-term financial stability and competitiveness in crisis conditions.