The Information and Analytical System of Cost Accounting for Promotion of Goods: Domestic and International Experience

The aim of the article is to develop theoretical provisions and methodological recommendations for the creation of an information-analytical system for accounting costs of product promotion, taking into account domestic and international experience. Currently, there exists a certain information vacuum in the area of accounting for costs related to product promotion, although such a comprehensive scientific and practical work is precisely what is required for practical application, which, in turn, cannot happen without studying the theoretical and methodological provisions for accounting costs related to product promotion. It is determined that for accounting sales costs within the synthetic account 93 «Sales Costs», it is advisable to open the account «931 Marketing Activity Costs», which will help in accumulating sufficient information regarding product sales costs as a basis for conducting audits and analyzing the effectiveness of the marketing activities of trading and manufacturing enterprises. As a result of the research, a comparison of international and national approaches to the recognition and evaluation of marketing costs of product promotion has been conducted. The approaches of international standards concerning the regulation of accounting for marketing costs have been summarized. An analysis of the features of accounting for advertising costs, website creation, and video production has been carried out. The results obtained can be used during the transition of domestic enterprises to reporting under international standards. The essence and meaning of the concept of «costs of product promotion» have been clarified, which has allowed for the development of an information-analytical system for their accounting to enhance the management process of these costs at the company level. To create an information and analytical system for accounting promotion costs, a conception has been proposed based on a systematic approach that allows considering the enterprise as a complex object consisting of several subsystems. This approach will also facilitate monitoring and analytical diagnostics of the company’s costs through the interaction and mutual complement of the accounting and analysis subsystems. A structure for the informational base on product promotion costs has been proposed, which enables the organization of key factors influencing the creation and effective functioning of the information and analytical accounting system, effectively managing accounting processes, and positively impacting the quality of resulting information throughout the entire information cycle, satisfying the diverse needs of user groups with minimal costs and risks for the enterprise. During the critical analysis of the scientific literature, it was found that there is not only a lack of a definition for the term «costs of product promotion» but also of consistent approaches to formation of their classification. The study presents an original classification of product promotion costs that takes into account the fact that promotion is a process consisting of logically interrelated stages. In the proposed classification, costs are structured not only by types and categories but also by the possibility of being reflected in management, financial, and tax accounting, which allows them to be used for building a multifunctional information and analytical system for accounting product promotion costs of the company, contributing to the improvement of the quality of control and analysis of costs and the making of management decisions regarding investment in more promising areas of product promotion.