Management expenses in the context of Federal Accounting Standard (FSBU) 5/2019 - Inventories
<b>Subject.</b> This article deals with the issues of accounting and write-offs of management costs and disclosure in reporting, their role for top managers, as well as improving the delineation and qualification of the types of costs to be accounted for as managerial, and the impact of the proposed approaches on reporting performance. <b>Objectives.</b> The article aims to justify the need for a clearer definition of management costs and a more logical, cost-effective division of costs into production and management ones. <b>Methods.</b> For the study, I used the systems approach, logical generalization and abstraction. <b>Results.</b> The study shows that not all expenses that organizations account for as the management ones are actual. Many of the costs relate to production activities. Since the methodological guidelines for accounting for material and operational costs have been abolished in connection with the adoption of FSBU 5 - <i>Inventories</i>, they may not be applied any more. <b>Conclusions and Relevance.</b> The subject terminology and a clear concept of management costs need to be defined. IFRS 2 - <i>Inventories</i> gives a more logical notion of management costs in combination with administrative costs. This makes it possible to adapt the accounting according to the Russian standards to the running accounting practice with a minimum recalculation. The presented study results are intended to develop theoretical views on the formation of the actual cost of finished products, the full cost of implementation and interpretation of these indicators for management. The results can be used for scientific and practical activities related to financial and management accounting research.