WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 19, 2022
Financial Instruments to Create Value Added of the Entities Engaged in Foreign Economic Activity: Analytical Accounting Perspective
Authors: , , , , ,
Abstract: The aim of the article was to justify the financial instruments to create value added of the entities engaged in foreign economic activity. The key method used to identify the correlations between the studied processes and phenomena was the correlation and regression analysis. Graphics simulation and the logical structure analysis were also applied to schematize the sequence of implementing the author’s suggestions to improve the accounting and analysis of value added as a financial result of an entity engaged in foreign economic activity. The specific features of the value added of the entities engaged in foreign economic activity as an economic category are described. The ways to manage and optimize the value added of entities engaged in foreign economic activity were suggested. The author’s hypothesis is grounded that the results of the created value added are determined by the priority of key impact factors (financial instruments) with a concurrent limitation of increasing costs for other factors. Based on the practical results and theoretical generalizations, the recommendations for structuring accounting, control and analysis of value added of entities engaged in foreign economic activity and taking into account the factors that affect it. The resource redistribution procedure for financial instruments that affect the amount of value added while controlling costs, which is presented on the example of a particular company, constitute the practical significance of this article. Prospects for further research in this area are to develop cost control mechanisms for value-added components in terms of types of activities. This will allow for a more effective cost minimization of entities engaged in foreign economic activity and increase value added through optimizing the value added chain.
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Keywords: Value added, Impact factors, Financial results, Performance, Export, Import, Foreign economic activity, Accounting, Analysis
Pages: 1551-1563
DOI: 10.37394/23207.2022.19.140