Cost Accounting and Performance Measurement With the Purpose of Increasing the Competitiveness of Sports Organizations

Abstract

Dynamic business environment, rise in the share of overheads in total costs, strong competition on the global market and numerous other challenges that organizations are facing have imposed the need to reexamine the existing, design new costing methods and apply more appropriate management tools to improve management information basis, maintain and improve competitive advantage. In addition to traditional costing methods, organizations apply the methods adapted to the changing business environment, such as Activity-Based Costing (ABC). The positive experiences of manufacturing organizations which apply activity-based costing have led to the expansion of ABC application among service organizations. Changes in cost accounting are in line with changes in performance measurement systems, all for the purpose of improving the functioning of organizations and successfully responding to the demands of a changing business environment. The paper analyzes the possibility of applying activity-based costing and Balanced Scorecard in sports organizations that provide a large number of specific services.