Cost accouting at transport services enterprise: the case of the United Kingdom

Cost accounting has emerged from the history of manufacturing. The European industrial revolution of the 18th and 19th centuries, and the concomitant modernization of industry through its mechanization, have created an increasing need for accurate production costs. There is a need to record the production costs incurred using the double entry principle. Although cost accounting has originated in the manufacturing sector, its modern application areas cover a wide range of economic activities. Today, cost accounting is practiced by various sectors of industry, manufacturing, trade, and services. Public sector organizations, such as governments, various departments, also use cost accounting to determine their effectiveness and anticipate opportunities for improvement. Cost accounting is a system used to determine the costs incurred by a business or other organization [4]. This can be defined as a system used to record cost data and to determine the cost of manufacturing a product or providing a service. Managers use the information gathered during cost accounting to control costs and make the business more profitable. Research problem. Understanding how costs change as performance changes is an important part of planning, control and decision-making [10]. There are a number of ways to perform cost estimation and analysis, but according to Sharman [23], many companies are reluctant to change their old costing methods and systems. The owners of these companies are reluctant to accept changes in the company, relying on the high costs of replacing the old system, which may occur due to the introduction of the anew system, as well as the reluctance of accounting staff to learn new methods and accept innovations. Okunbor [20], meanwhile, argues that costs should be used to make a profit, so then the question arises: can cost accounting, and the results it provides, really help not only to achieve more efficient performance results, but also to generate additional profits? Research aim - perform a comparative analysis of the cost accounting of the United Kingdom and Lithuania based on the example of the accounting of the transport company in the United Kingdom. Research objectives: To reveal the discourse of costs and their accounting in the context of the United Kingdom and Lithuania, highlighting the general similarities and differences of the concepts used in relation to both countries. 2. To define the composition of costs in accounting in the United Kingdom, distinguishing the basic principles. 3. To examine the peculiarities of cost documentation, recording and presentation in financial statements of the United Kingdom accounting, defining the cost accounting process. Research object – cost accounting management in the United Kingdom. Research methods: Analysis of scientific literature and legal acts, statistical data analysis, graphic representation and interpretation.