Abstract:

Today, one of the most important indicators that companies are able to understand whether they are successful in the market is that the products or services they produce are known to be dependent on the applications both in the market and the state of the competing companies. This is why it is the most important tool that companies face in the marketing point, and advertising is the fastest and most effective tool in this field, while it is the marketing tool that allows companies to find affordable markets, which allows them to use their investments in the most accurate way. In recent years, advertising costs have increased significantly. Advertising costs accounting is also known to make up a significant part of marketing sales distribution costs. However, it should not be forgotten that there are some difficulties faced at the point of accounting of advertising costs. In today’s competitive environment, companies that produce, distribute or trade products or services, when they want to increase their sales, be able to compete, mark, open to foreign markets, organize advertising activities. Advertising is usually defined as a pre-planned and non-personal communication, which is carried out by specific sponsors, through various means and methods of communication, aimed at holding products, services and ideas. Advertising ensures the growth of the company, while ensures the diversity of its products. They can also increase their competitiveness by directing the crowds to their products and services. The study has taken into account the circumstances that could be faced with the accounting of advertising costs. First, the actual cost method and the standard cost method are given examples of how advertising spending should be accounted during the period. After that, the advertising costs are not only in the period they are made, but also in the future, with the idea that they will benefit the companies and the accounting’s basic concepts are activated according to the term of periodicity and the conversion into expenses.