Improving Managerial Cost Accounting And Product Cost Calculation: A Contemporary Approach

Abstract

Accurate product cost calculation is central to effective managerial decision-making, profitability, and operational efficiency. Traditional cost accounting methods often fail to reflect the true cost of products due to imprecise overhead allocation. This study investigates methods to improve managerial cost accounting, focusing on the integration of activity-based costing (ABC), real-time data collection, and enhanced cost driver analysis. Using a mixed-methods approach, data were collected from 50 manufacturing firms through structured surveys and five in-depth case studies. Results demonstrate that ABC significantly improves cost accuracy, informs strategic pricing, and enhances managerial decision-making. The study concludes that combining advanced costing techniques with employee training and technological integration optimizes product cost calculation and overall business performance.