Improvement of Cluster System and Cost Accounting in Textile and Knitting Enterprises
Abstract
A research investigates the improvement of cost accounting and cluster system implementation within Uzbekistan's textile and knitting enterprise sector. The nation seeks to increase textile output by 2 times and exports by 3 times by 2030 while requiring all financial reports to comply with international financial reporting standards (IFRS). Current accounting systems do not align with modern cluster-based production therefore they fail to provide sufficient tracking and management of production costs across related manufacturing stages. The study implements comparative analysis together with financial-statistical evaluation supported by international experiences to develop an advanced cost accounting model. Traditional cost categorization systems fail efficiently and cluster-based companies lack dedicated management systems for their expenses. The research presents a dual approach which includes separate cost sub-accounts for time-based recognition and goal costing based on target and Kaizen practices. Analysis performed within various industries reveals that the proposed cost reduction approach has the power to cut overall costs by up to 20% while enhancing financial clarity and meeting IFRS standards. Organizational performance will improve substantially when management implements strategic cost planning while using econometric forecasting methods along with updated Chart of Accounts. The proposed approach functions as the base for textile sector resource optimization that leads to profit improvements and management accounting system modernization.
References
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