INNOVATIVE COST ACCOUNTING PRACTICES TO ENSURING SUSTAINABLE DEVELOPMENT OF THE ENTERPRISE

Abstract

Global trends demonstrate the objective necessity of ensuring sustainable development of the enterprise as a prerequisite for its survival in the global competitive environment. Innovations in management  accounting are crucial for achieving sustainable cost management. The directions of this research were focused on: 1) theoretical substantiation of the role of management accounting in ensuring sustainable development of pharmaceutical companies; 2) practical recommendations for accounting and analysis of environmental costs; 3) improvement of forms of intra-corporate reporting for analytical support of environmental decision-making. Our arguments are aimed at expanding the scope of application of management accounting and analysis, since domestic enterprises use innovative methods of cost accounting extremely limitedly. We prove the advantages that pharmaceutical companies receive when using the ABC method in practice for accounting and analysis of environmental costs. The conceptual principles of environmental management accounting are presented. They cover elements and principles that will allow integrating environmental aspects into management processes, generating accurate environmental and financial information, ensuring transparency and compliance with ESG, ISO 14001, GRI standards. A methodological approach to using the ABC method in management accounting and environmental cost analysis for decision-making in the sustainable development management system of a pharmaceutical company is proposed. The implementation of the proposed methodological approach based on pharmaceutical company data is presented. As a result, we expand the perimeter of management accounting and analysis in the context of forming informative corporate indicators in the direction of economic and environmental dimensions when preparing internal corporate reporting and sustainability reporting.