The Use of a Process-Oriented Approach to the Profit Formation of Enterprises Engaged in Innovative Activities

Modern economy with a high level of globalization and competition stimulates enterprises to establish new technology, business processes and tools of enterprise management, causes an increase in share of indirect costs in their full amount. Therefore, it is possible to manage profit through clear accounting record and indirect costs regulation. This is especially relevant for enterprises engaged in innovative activities, the organizational and managerial structure of which acquires the features of project oriented structure, which has the main characteristics of flexibility and lack of hierarchy. The purpose of this study is to reason the use of a modified process-oriented approach (TDABC) to the profit formation of innovative enterprises when making management decisions in the field of financial management. The analysis concluded that the use of the ABC approach to profit formation is appropriate when the group of costs is divided between processes attributed to different levels of the hierarchy, when costs are formed by different projects and can be attributed to a certain object, it is better to use TDABC approach. Accordingly, for enterprises that are engaged in innovative and search activities, and implementing one-time individual or small-batch orders, it is more appropriate to use the modified time-driven ABC approach (TDABC).