Introduction. In today’s business environment of construction companies the actual issue is the correct allocation of overhead expenses between cost accounting objects, taking into account the relationship between general contractors and subcontractors, since good allocation provides the formation of adequate information about the cost of construction products and efficiency of spending.

Purpose.The aim of the paper is to analyse the appropriateness of allocation of overhead expenses of construction companies using multiple distribution factors that ensure accounting features of the functioning of the organization, their mutual obligations, and reliable estimates of the cost of construction products for decision-making.

Method (methodology).Methodological basis of our research is the key provision of modern economic theory, accounting, concepts of domestic and foreign scientists who examine patterns of recognition, clustering and distribution of the overhead expenses in the construction organizations.

We have used the dialectical method for monitoring the main results of the previous investigations, as well as methods of theoretical generalization and comparison - to determine the merits of the basic terms and concepts; abstraction and grouping - to determine the classification criteria of overhead expenses and indicators of distinguish the base of their allocation; analysis and synthesis - in the scientific justification of methodologies of allocation the overhead expenses and the evaluation of the effectiveness.

Results. It has been carried out the critical analysis of the concept  «overhead expenses», their distribution methods and approaches in order to reflect the accounting business partnership of general contractors and subcontractors in respect of the assignment of overhead expenses to the costs of servicing contractor. It is proposed a detailisation of account 91 «General expenses» of the Chart of Accounts by entering the subaccount 911 «The costs of maintenance and operation of construction machines and mechanisms» and the subaccount 912 «Transaction overhead expenses», 913 «Other overhead expenses» with the opening analytical accounts for individual units of the building organization to take account of the needs of construction companies. It is recommended to approve the list of regulated articles of typical calculation of variable and fixed overhead expenses for construction. The analysis of the distribution of overhead expenses between specific types of building products using single and multiple base distribution has been carried out. Application of the results will allow to determine significantly the cost of construction products and effectively manage costs. It is proposed to develop a unified methodology for timely recording overhead expenses for service subcontractors by general contractor organizations. Further relevant researches will contain selection criteria of allocation overhead expenses, especially the benefits, limitations and the appropriateness of their application. 

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