Advertising as a part of social costs: accounting and analitical approach

Abstract

Social costs play an important role in activity of any enterprise under the conditions of competitive environment while building socially oriented market economy. This requires the specification of the concept of social costs, as well as their composition and the research of particular kinds of expenses. The purpose of this article is to carry out the research of advertising costs as a part of transaction costs in generally and social costs in particular, disclosure of the place of this concept in the existing classifications, providing a list of types and means of advertising, which are included into the company’s expenses and also determining of their place in accounting. The research is based on existing works of foreign and national scientists through their extension and deeping. Methods of analysis, synthesis, classification, specification are used. The results of research can be used not only by large corporations, which apply the concept of corporate social responsibility in their management, but also by other companies irrespective of the scale of activity, forms of ownership and other peculiarities of the business. It is caused by the fact that the extension of social advertising enables to integrate the financial opportunities of entities in order to achieve significant social and ecological effects.