Making Cost Data Work for Public Financial Management

This paper examines the role of cost accounting in public financial management, focusing on budget credibility, performance-based budgeting, public procurement, and corruption detection. Despite demonstrated benefits, cost accounting remains underutilized in the public sector due to implementation constraints. The working paper proposes the adoption of automated cost accounting systems to streamline processes, reduce operational costs, and support complex data analyses. It further emphasizes the need for interoperability between government financial systems and administrative records to enhance the granularity of costing indicators. The paper also explores machine learning as a method to support budgetary decision-making with cost accounting data.

Authors

Publication Details

Journal
IMF Working Paper
Published
2025-08-01
DOI
https://doi.org/10.5089/9798229021470.001
Primary Topic
Accounting and Organizational Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Making Cost Data Work for Public Financial Management

C.H. Cho, Lorena Rivero del Paso, Ramon Narvaez Terron
IMF Working Paper
Accounting and Organizational Management
article

Making Cost Data Work for Public Financial Management

C.H. Cho, Lorena Rivero del Paso, Ramon Narvaez Terron
article en

Abstract

This paper examines the role of cost accounting in public financial management, focusing on budget credibility, performance-based budgeting, public procurement, and corruption detection. Despite demonstrated benefits, cost accounting remains underutilized in the public sector due to implementation constraints. The working paper proposes the adoption of automated cost accounting systems to streamline processes, reduce operational costs, and support complex data analyses. It further emphasizes the need for interoperability between government financial systems and administrative records to enhance the granularity of costing indicators. The paper also explores machine learning as a method to support budgetary decision-making with cost accounting data.

IMF Working PaperVol. 2025(159)
Openalex Percentile: Top 66%
Accounting and Organizational Management
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