COSTS AND PRICE FORMATION OF ACCOUNTING SERVICES: A STUDY AT AN ACCOUNTING

OFFICE IN MACEIÓ / AL

Jann Lucas Araujo Valença de Oliveira1

Marcos Henrique Sena dos Santos Júnior2
Paulo Sergio Cavalcante3
Valdemir da Silva4
Andreza Cristiane Silva de lime5

SUMMARY
This study aimed to determine the costs and to form the prices of accounting services provided by an accounting
office, located in the city of Maceió / AL, following the absorption costing methodology. The research is a case
study with a quantitative and descriptive character, carried out in the period of October 2018. Through methods
used in cost accounting, the costs of the company were determined and the Mark-up formula was formulated the
estimate of the new sales price for the services provided by the organization. It is noted that the studied company
can explore its pricing policy to reach the profit margin estimated by the market. For this, the organization and
accounting professionals must always be informed and studying so that they can add even more values to their
services.

Key words: Costs. Price Formation. Accounting Services.

1. INTRODUCTION

1
Bachelor of Science in Accounting from the Federal University of Alagoas. Email:[email protected]
2
Bachelor of Science in Accounting from the Federal University of Alagoas. Email:[email protected]
3
Master in Business Management from Instituto Superior de Gestão - Lisbon - Portugal (2014).
Adjunct Professor at the Federal University of Alagoas.http://lattes.cnpq.br/2957409375347025.
Email:[email protected]
4
Master in Accounting Sciences from the Federal University of Pernambuco. Assistant Professor at the Federal
University of Alagoas. Orcid:https://orcid.org/0000-0001-5515-382XE-mail: [email protected]
5
Master and Graduated from the Federal University of Pernambuco. Assistant Professor at the University of
Pernambuco. Orcid:https://orcid.org/0000-0001-9833-1980. Lattes:http://lattes.cnpq.br/5359452747805253.
Email: [email protected]
Oliveira, JLAV, Júnior, MHSS, Cavalcante, PS, Silva, V., Lima, ACS; Costs and Price Formation of Accounting
Services: A Study with an Accounting Office in Maceió / AL.Magazine of Entrepreneurship and Management of
Micro and Small Enterprises V.5, Nº2, p.81-96, May / Aug. 2020. Article received on 10/07/2020. Last version
received on 08/05/2020. Approved on 25/08/2020.
Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.

Due to the economic instability experienced in Brazil today, controlling costs is

fundamental for any type of company, and, therefore, it is no different for accounting firms,
as, according to Martins (2003), registering and controlling costs assists in decision making.
Regarding for accounting organizations, measuring the costs of their services
performed for their client companies becomes a problem in this area. This occurs due to the
difficulty of allocating costs for each service provided by an accounting firm. The lack of the
practice of managerial skills is one of the main causes for the problems faced by accounting
firms, due to the little attention given to this practice and wrong price calculations
(FIGUEIREDO; FABRI, 2000).
According to the latest PAS survey (Annual Service Survey) carried out by the
Brazilian Institute of Geography and Statistics, in 2016, in Brazil there are approximately
420,000 accounting, law, consulting and similar companies; such companies correspond to
11.1% of service revenue. This demonstrates the need for these services for society, making
entrepreneurs in these areas even more concerned with the movements and what happens in
their organizations.
In view of the above, this study aims to determine costs and to form the prices of
accounting services provided by an accounting office, located in the city of Maceió, following
the absorption costing methodology. Historically, accountants were called "bookkeepers" due
to their function of keeping commercial companies' commercial books, however, with the
evolution of society, there was also the evolution of accounting and more functions were
assigned to the accounting professional. With more responsibilities and devices, nowadays
companies are dependent on this professional, not only for bookkeeping, but also for the
calculation of their taxes and assistance in their most important decisions.
Currently, with such responsibility, the accountant finds, in his organization, functions
of departments of his client companies such as the personal department, tax department,
management department and the accounting department itself, in addition to giving him the
administration of his organization.
In addition to the introduction, the present study is divided into four more sections. In
section 2, we find the theoretical framework, addressing. In section 3, the research
methodology. In section 4, the analysis of the data and results presented, and finally, in
section 5, the final considerations of the study are discussed.

2 LITERATURE REVIEW

2.1 ACCOUNTING ORGANIZATIONS

Accounting organizations are the most common means of acquiring accounting

services. According to Figueiredo and Fabri (2000, p.44) "the mission of an Accounting
Organization is to provide services of an accounting nature". Figueiredo and Fabri (2000) still
complete, stating thata set formed of the union between technology, and the human capacity
available with the necessary qualities to direct, control and coordinate the essential activities
for the good performance of the work to be performed.
Already for Lyra (2003, p.21), "it is about the outsourcing of a certain amount of
accounting services to individual and / or corporate clients". Thus, accounting organizations
become, in this case, the “external eye” of their clients, assisting them and giving a more
realistic view of the situation.
Accounting organizations will be integrated by accounting professionals and other
professionals from other regulated professions, as long as they are registered with their
supervisory bodies, in accordance with Article 3 of CFC Resolution No. 1,555, of December

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
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6, 2018 (BRAZIL) , 2018).
For the constitution of accounting organizations as a company, they may have
different formats, such asindividual office, which must have an accountant or accounting
technician qualified to practice accounting activity. However, the accounting organizations, in
their majority, are constituted in the form of a simple and limited society for the exploration
of the accounting activity by two or more accountants, accountant or accounting technician
(GATTI, 2000).

2.1.1 Provision of Accounting Services

The demand that uses accounting services is extensive and stems from several areas,
"in general, accounting firms provide services to legal entities and individuals who operate in
all branches of economic activity" (THOMÉ, 2001, p. 20 ).
Dand according to Iudícibus and Marion (1987), accounting was only intended to
serve a tax information system, and today, although little used, it is also seen as an important
managerial tool, providing necessary information for decision making and , for the
management process: planning, execution and control.
For Ott (2004), accounting serves two distinct segments depending on the interest of
its users in their information. You can obtain fiscal and legal financial information for
external users, so you have financial accounting. But, there is also management accounting
that should generate information for managers to make decisions, this is focused on internal
users, on the optimization of results and on the performance of departments, production and
managers.
In this way, accounting services they generate information that allows its users to
know the financial reality of their company and assist them in making decisions (OTT, 2004).
Ribeiro et al. (2012) state that there are several accounting functions and an important role for
the company. Its services range from analysis and preparation of financial statements,
preparation of cash flow, tax returns and cost analysis to more strategic functions for the
company, such as strategic planning.

2.1.2 Users of Accounting Services

Users of accounting services can be from different areas and have different profiles,
this makes it impossible to define the standard of these users, as they can identify different
stakeholders with unusual objectives. The primary users of accounting information are
investors, creditors and administrators (SOUZA et al., 2016).
Souza et al.(2016) continues to state that employees, customers, the government and
the general public can be identified as secondary users. For Iudícibus (2004), accounting can
have internal users as external and with different interests, this means that the information
must be generated by the Entity in a broad and reliable way, so that there can be
understanding on the part of those who use the information and that the decision is made
consciously.

2.2 COST CENTERS OF ACCOUNTING ORGANIZATIONS

Cost centers are a way in which an entity's departments are organized. Rezende Filho
(2005) states that “traditionally the organizational chart of accounting services companies
starts with the owner, who in most cases is the Accountant or Accounting Technician”.
Cost centers represent the division of the company into groups to which all indirect

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.
costs will be allocated. “They are units in which there are only accumulatingexpenses and
costs ”. (BERNARDI, 1998, p. 324)
Henrique et al. (2009)highlight some accounting services, such as, for example, the
accounting and tax entry departments, have mechanical characteristics in the organizational
form. This mechanization of the service cooperates to departmentalize the costs of an
accounting organization.
According to Martins (2003) "for a correct distribution of costs, departmentalization is
mandatory, each department can be divided into several cost centers, and the departments
must be divided into production and services". Therefore, accounting organizations have the
characteristic of providing accounting bookkeeping services, tax bookkeeping, activities
related to the personnel department, delivery of documentation, legalization of acts and
records, alteration and cancellation of organizations in general.
Relating the exposition presented above with respect to the departments, it is
considered that the cost centers of an accounting organization will be the tax sector, which
will be responsible for preparing tax deeds, the personal sector, which will be responsible for
meeting the demand for services necessary from the person department of a company, the
accounting sector, responsible for the delivery of accounting statements (cash book, balance
sheet, etc.) and the administrative sector, responsible for controlling the expenses of the
accounting organization itself.

2.3 COSTS OF ACCOUNTING SERVICES PROVIDED

Measuring the costs of any type of service provided is a challenge, but it becomes
necessary to obtain control of the service. According to Perez Júnior, Oliveira and Costa
(2005) "the significant growth of companies whose activities are related to the provision of
services is one of the characteristics of the current economic world".
Henrique et al. (2009) point out that “the laws constantly change and the accounting
services companies perform their services based on accounting, tax and labor legislation, that
is, if the laws are changed, aspects of accounting work are changed”.
Taking into account the above statements, the cost of accounting services becomes
difficult to measure because there is a great dependence on human labor and specialization of
this workforce to adapt it to constant changes in legislation and in the market (BOMFIM;
PASSARELLI, 2008).

2.4 PRICE FORMATION

The formation of the sale price of any merchandise or service is a fundamental object
for every company. For Sardinha (1995) the price can be defined as the amount of money that
the consumer is willing to pay while at the same time the company will receive in exchange
for what is under negotiation.
According to Martins (2003) the knowledge of the cost of the product is necessary for
the formation of the price, however it is also necessary to know the degree of elasticity of the
demand, the prices of the competing products, the prices of substitute products, the
strategycompany's marketing strategy, among other factors that can influence training.
The influence that costs have on price formation is very strong, because then the
gesture can know where it can cut unnecessary expenses to find a fairer price. A cost system
that provides reliable information for managers and that is well structured, directly contributes
to the formation of the final sale price of the product and bringssecurity for making this
decision (BOMFIM; PASSARELLI, 2008).
One technique that uses the costs of a product or service to define the sales price is the

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
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Mark-up. According to Wernke (2001) the Mark-up is used to form the sales price,
determining factors such as: taxes (taxes and contributions), sales commissions, fixed
expenses and the company's profit margin.
Dubois, Kulpa and Souza (2006) state that the Mark-up must provide a sales price that
covers all expenses and costs of the company, providing a satisfactory profit. Therefore,
Mark-up becomes a technique that can be used by any company regardless of its size.

2.5 PREVIOUS STUDIES

Previous studies on price formation are found significantly in the literature, especially
at the national level. These studies usually refer to empirical research that seeks to identify
elements that are taken into account by entrepreneurs from the most diverse fields of activity,
in order to define the sale price, whether for products or services. Chart 1 presents the
previous studies that served as a basis for forming the structure and methodology of this
research.

Table 1 - Previous studies

Author / year objective Result
The use of the departmentalization
Propose a cost structure management methodology will allow the manager greater
Nascimento et al. (2017) model using the departmentalization security in the cost analysis, allowing for
method better decision making.
The determination of the costs of The office is not making the desired profit
accounting services provided to in almost all client companies, due to the
companies that are clients of an fact that it cannot
Farber et al. (2014) accounting firm in Registro / SP. charge the real price of the service provided
because of competition.
Evaluate how a family management The implementation of cost centers will
accounting office performs cost contribute to the permanent evaluation of
control in its routine, to be defined by the performance of your office, and will
Souza and Alves (2012) the departments and to implement make it possible to monitor the performance
cost centers for each department. of each department, assigning
responsibilities and charging results
according to pre-established plans.
It was found in the study that most of the
Identify what costs the accounting surveyed client companies met the price of
Moreira et al. (2010) organization Casintep incurs to their fees, during the survey period, below
provide services to its client the price calculated using the profit margin
companies. that the company wanted.
Source: Prepared by the authors, 2019.

Analyzing Chart 1, it was possible to observe that in the study by Moreira et al. (2010)
and Farber et al. (2014) it was found that the price that the offices analyzed do not meet their
expectations, a fact that can cause businessmen in the industry to seek alternatives to improve
their results. Such decisions were seen in the research by Souza and Alves (2012) and
Nascimento et al. (2017), who adopted the implementation of cost centers and
departmentalization, respectively, to have an improvement in the control over costs that affect
the execution of their services, and thus, be able to have a basis on what can be done to
improve its financial and, mainly, economic results. Following this perspective,

3 METHODOLOGY

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.
The research was developed in an accounting office located in Maceió, Alagoas, from
June to August 2019. The research approach is classified as quantitative, as it focuses on data
collection and analysis. And it has the nature of applied research, since it has developed
knowledge for practical application.
Regarding the classification of its objectives, the researcha is classified as exploratory,
since the worked data generated were used to find out if the company has the potential to
achieve a certain objective. For Gil (2007), the objective of this type of research provides
greater familiarity with the problem, giving the possibility to build hypotheses or make it
more explicit.
In relation tos technical procedures, the research is classified as bibliographic, as it
needs studies already published, and as a case study, because the study is carried out in a
specific company. Gil (2002) explains that this type of research has the characteristic of
investigating ideologies or proposing the analysis of different positions about a problem.
The case study, on the other hand, has the characteristic of analyzing an object in its
entirety, using methods such as planning, data collection and techniques for analyzing this
data. Thus, investigating the proposed subject following pre-defined procedures.
(ACEVEDO; NORONHA, 2007).
Data collection was performed through thedocument analysis, electronic spreadsheets,
internal reports and searches in a database of accounting information existing in a system used
in the company under study. Table 2 shows the clients of the investigated company and,
respectively, its branches, frameworks and size.

Table 2 - Companies Analyzed

Company Branches Federal framework Size
Customer 1 Trade and Service Parts Simple national EPP
Client 2 Association
Client 3 Food Trade Simple national ME
Client 4 Trade in bed, bath and table MEI MEI
Customer 5 Consulting services Simple national EPP
Client 6 Condominium TOO MUCH
Customer 7 Condominium TOO MUCH
Client 8 Consulting services Simple national EPP
Client 9 Hair Removal Services Simple national EPP
Client 10 Food production cooperative Presumed profit COOPERATIVE
Customer
Food trade Simple national EPP
11
Client 12 Psychology Services Simple national ME
Customer
Engineering services Simple national ME
13
Customer
Association
14
Customer
Food trade MEI MEI
15
Customer
Consulting services Simple national ME
16
Customer
Trade and services of frames Simple national ME
17
Customer
Service and Trade of parts for irrigation Simple national EPP
18
Customer
Consulting services Simple national ME
19
Customer
Association
20
Customer
Rental of own property and trade in materials Presumed profit EPP
21

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.
Customer
Commerce of artisan works of art Simple national ME
22
Customer
Consulting services Simple national ME
23
Customer
Pest control services Simple national ME
24
Customer
Office supplies and cleaning trade Simple national EPP
25
Client 26 Consulting services Simple national ME
Customer
Consulting services Simple national ME
27
Client 28 Crafts trade MEI MEI
Client 29 Propolis derivatives trade Simple national ME
Client 30 Food trade Simple national ME
Customer
Trade in wood and construction material Simple national EPP
31
Client 32 Consulting services Simple national ME
Client 33 Trade and services for animals Simple national EPP
Client 34 Leasing of movable property Simple national EPP
Client 35 Consulting services Simple national ME
Client 36 Consulting services Simple national ME
Client 37 Television and cram services Presumed profit ME
Client 38 Television and cram services Presumed profit ME
Client 39 Condominium TOO MUCH
Source: Authors' elaboration, 2019

All clients were described who, in the month of October / 2018, established for the
study, effectively participated in the revenue of accounting fees of the office, differentiated by
the form of taxation and their branches of activity.

4 DATA ANALYSIS AND RESULTS

4.1 CALCULATION OF DIRECT COSTS

The calculation of direct costs was subdivided into the calculation of direct material
costs (MD) and direct labor costs (MOD), aiming to investigate and separately determine the
resources used directly in the process of providing accounting services performed by the
office, both personal and material.

4.1.1 Costs of Direct Materials

The costs of the MD are represented by the consumption of office supplies in general,
reams of bond paper, toner and ink cartridges, pens, clips, staples, among others. To identify
the costs of direct materials, a control of the consumption of the office was carried out during
the studied period, in which the costs of the DM consumed by each client were identified,
which can be seen in Table 4.
Table 1 - Material Costs
Materials (in R
Companies
$)
Customer 1 4.98
Client 2 1.04
Client 3 3.13
Client 4 2.61
Customer 5 9.46

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
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Client 6 14.94
Customer 7 9.96
Client 8 5.22
Client 9 9.46
Client 10 3.13
Customer 11 10.44
Client 12 2.09
Customer 13 1.04
Customer 14 4.98
Customer 15 1.04
Customer 16 3.13
Customer 17 4.94
Customer 18 9.96
Customer 19 4.59
Customer 20 9.87
Customer 21 9.46
Customer 22 4.73
Customer 23 5.22
Customer 24 7.83
Customer 25 4.98
Client 26 4.98
Customer 27 4.73
Client 28 2.09
Client 29 5.22
Client 30 6.26
Customer 31 14.94
Client 32 4.98
Client 33 4.73
Client 34 9.96
Client 35 4.98
Client 36 2.09
Client 37 2.09
Client 38 5.22
Client 39 6.26
Source: Prepared by the authors based on the survey data (2019)

The values described in the table above are found based on the revenue percentage of
each company. Then this result is used for multiplication with the total cost of materials for
the month chosen for analysis: October / 2018.

𝑅𝑒𝑐𝑒𝑖𝑡𝑎 𝑑𝑜 𝐶𝑙𝑖𝑒𝑛𝑡𝑒
Materials = Total direct materials𝑅𝑒𝑐𝑒𝑖𝑡𝑎𝑙 𝑡𝑜𝑡𝑎𝑙 (𝑆𝑜𝑚𝑎 𝑑𝑒 𝑡𝑜𝑑𝑜𝑠 𝑐𝑙𝑖𝑒𝑛𝑡𝑒𝑠) 𝑥

4.1.2 Cost of Direct Labor

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.
Determining the cost of MOD requires, for each employee, information regarding the
number of working days and hours actually worked. Considering the internal scenario, as well
as the daily routine and behavior of each employee of the researched company, a 10%
unproductiveness was considered, referring to idleness, which was deducted from the hours
worked, resulting in the number of hours actually worked by each employee. Table 2 shows
the number of hours available and the number of hours actually worked by each employee
and partner.

Table 2 - Total time available - referring to October / 2018

1 2 3 4 5 7 8 9 Partner
Number of days 31 31 31 31 31 31 31 31 31
(-) Sundays (4) (4) (4) (4) (4) (4) (4) (4) (4)
(-) Saturdays (4) (4) (4) (4) (4) (4) (4) (4) (4)
(-) Holidays (2) (2) (2) (2) (2) (2) (2) (2) (2)
(=) Business days 21 21 21 21 21 21 21 21 21
(x) Number of hours /
4 am 8 am 8 am 8 am 4 am 8 am Afast 8 am 4 am
days
(=) No. of hours
84h 168h 168h 168h 84h 168h Afast 168h 84h
available
(-) Downtime - 10% (8.4h) (16.8h) (16.8h) (16.8h) (8.4h) (16.8h) Afast (16.8h) (8.4h)
(=) Total Available
75.6h 151.2h 151.2h 151.2h 75.6h 151.2h Afast 151.2h 75.6h
Time
Source: Prepared by the authors based on the research data (2019).

Finally, based on the values found in the previous table, the cost per hour worked for
each employee was established, by dividing the total cost of the employee and the time
actually available, as reported in Table 3.

Table 3 - Calculation of Labor Costs (in R $)

Employees
Costs
1 2 3 4 5 7 8 9 Partner
Monthly salary 500.00 2,198.02 1,927.00 1457.38 500.00 1310.00 1,049.00 2,500.00
13th Salary (1
month Salary x 183.17 121.45 87.42 208.33
1/12)
Vacation (1
month salary x 183.17 121.45 87.42
1/12)
Vacation
Bonus 1/12 of 61.06 40.48 29.14
1/3
Remuneration
INSS 197.82 116.59 83.92 104.94
FGTS 175.84 116.59 83.92
Social Benefits 479.90 1,192.41 470.67 368.93 1089.35
Total cost 500.00 3,478.97 1,927.00 1,973.94 500.00 1,310.00 470.67 1,789.74 3,902.62
Time available
75.6h 151.2h 151.2h 151.2h 75.6h 151.2h 151.2h 75.6h
(h)
Cost per hour 6.61 23.01 12.74 13.05 6.61 8.66 11.84 51.62
Source: Prepared by the authors based on the research data (2019).

Ensure that, in Table 3, that the total time available was 982.8 hours in the period in
which the research was carried out. The total cost, considering all employees, was R $
15,852.94. Thus, there is an average direct labor cost of R $ 16.13 per hour.

4.2 INDIRECT PRODUCTION COSTS

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
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Indirect Production Costs (CIP) totaled R $ 5,586.21, during the month of October
2018, according to the survey made in the spreadsheets and systems used by the office. Table
4 shows the inputs that make up the indirect costs and their respective values.

Table 4 - Indirect costs

Indirect costs Amount (in R
$)
Cleaning material 70.00
Energy 552.22
IPTU 303.95
Internet 153.44
telephone 214.03
Domain System 390.15
SCI system (accounting software) 500.00
Donations 65.00
Associative contribution (member CRC, Commercial Association) 161.64
Notary expenses 73.00
Vehicle expenses (license plate, parking, car wash) 10.00
Motorcycle rental 100.00
Courses and training (training) 236.94
Cleaning costs and computer services 186.90
Liability insurance 148.41
Alarm system 198.90
Advertising (company website) 80.00
Expenses with partner and motoboy fuels 1,343.42
Installment of taxes (Simples Nacional) 310.31
Interest and fines 116.22
Bank fees 296.76
Expenditures on disposables, mineral water and food 74.92
TOTAL 5,586.21
Source: Prepared by the authors based on the research data (2019).

The apportionment criterion chosen, for the distribution of the total of CIPs to the
company, was the monthly participation of the fee revenue received by each company in
relation to the total fee revenue of the office multiplied by the total amount of indirect costs,
as shown below .

𝑅𝑒𝑐𝑒𝑖𝑡𝑎 𝑑𝑜 𝐶𝑙𝑖𝑒𝑛𝑡𝑒
Apportionment = Total CIPs.𝑅𝑒𝑐𝑒𝑖𝑡𝑎𝑙 𝑡𝑜𝑡𝑎𝑙 (𝑆𝑜𝑚𝑎 𝑑𝑒 𝑡𝑜𝑑𝑜𝑠 𝑐𝑙𝑖𝑒𝑛𝑡𝑒𝑠) 𝑥

Table 5 shows the total amount of indirect costs for each company.

Table 5 - Value of the Indirect Costs of each Company

Companies Billing Percentage Total CIPs (in R $)
Customer 1 2.20% 122.66
Client 2 0.46% 25.72
Client 3 1.38% 77.15
Client 4 1.15% 64.39
Customer 5 4.17% 233.06
Client 6 6.59% 367.98
Customer 7 4.39% 245.32

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
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Client 8 2.30% 128.58
Client 9 4.17% 232.98
Client 10 1.38% 77.15
Customer 11 4.60% 257.15
Client 12 0.92% 51.43
Customer 13 0.46% 25.72
Customer 14 2.20% 122.66
Customer 15 0.46% 25.72
Customer 16 1.38% 77.15
Customer 17 2.18% 121.63
Customer 18 4.39% 245.32
Customer 19 2.03% 113.15
Customer 20 4.35% 243.27
Customer 21 4.17% 233.06
Customer 22 2.09% 116.53
Customer 23 2.30% 128.58
Customer 24 3.45% 192.86
Customer 25 2.20% 122.66
Client 26 2.20% 122.66
Customer 27 2.09% 116.53
Client 28 0.92% 51.43
Client 29 2.30% 128.58
Client 30 2.76% 154.29
Customer 31 6.59% 367.98
Client 32 2.20% 122.66
Client 33 2.09% 116.53
Client 34 4.39% 245.32
Client 35 2.20% 122.66
Client 36 0.92% 51.43
Client 37 0.92% 51.43
Client 38 2.30% 128.58
Client 39 2.76% 154.29
Source: Prepared by the authors based on the research data (2019).

It is noticed that there is not considerable variation in the CIP values apportioned for
the companies, as there is not so much disparity in the percentage of turnover, only two
companies have the rate of 0.46% and two with the rate of 6.59% that represent greater
difference between them, the others maintain a certain proximity.

4.3 COSTS OF SERVICES PROVIDED

Analyzing the survey of the costs of each client based on their billings, we can see the
highlight of direct labor, consistent with Table 6.

Table 6 - Total Costs of Services Provided by company

Companies Direct Material Indirect Production Cost Total cost
(in R $) Direct Labor (in R $) (in R $) (in R $)

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.
Customer 1 4.98 374.28 122.66 501.92
Client 2 1.04 78.47 25.72 105.22
Client 3 3.13 235.40 77.15 315.67
Client 4 2.61 196.46 64.39 263.46
Customer 5 9.46 711.13 233.06 953.65
Client 6 14.94 1122.84 367.98 1505.76
Customer 7 9.96 748.56 245.32 1003.84
Client 8 5.22 392.33 128.58 526.12
Client 9 9.46 710.90 232.98 953.33
Client 10 3.13 235.40 77.15 315.67
Customer 11 10.44 784.65 257.15 1052.24
Client 12 2.09 156.93 51.43 210.45
Customer 13 1.04 78.47 25.72 105.22
Customer 14 4.98 374.28 122.66 501.92
Customer 15 1.04 78.47 25.72 105.22
Customer 16 3.13 235.40 77.15 315.67
Customer 17 4.94 371.14 121.63 497.71
Customer 18 9.96 748.56 245.32 1003.84
Customer 19 4.59 345.25 113.15 462.99
Customer 20 9.87 742.28 243.27 995.42
Customer 21 9.46 711.13 233.06 953.65
Customer 22 4.73 355.57 116.53 476.82
Customer 23 5.22 392.33 128.58 526.12
Customer 24 7.83 588.49 192.86 789.18
Customer 25 4.98 374.28 122.66 501.92
Client 26 4.98 374.28 122.66 501.92
Customer 27 4.73 355.57 116.53 476.82
Client 28 2.09 156.93 51.43 210.45
Client 29 5.22 392.33 128.58 526.12
Client 30 6.26 470.79 154.29 631.35
Customer 31 14.94 1122.84 367.98 1505.76
Client 32 4.98 374.28 122.66 501.92
Client 33 4.73 355.57 116.53 476.82
Client 34 9.96 748.56 245.32 1003.84
Client 35 4.98 374.28 122.66 501.92
Client 36 2.09 156.93 51.43 210.45
Client 37 2.09 156.93 51.43 210.45
Client 38 5.22 392.33 128.58 526.12
Client 39 6.26 470.79 154.29 631.35
Source: Prepared by the authors based on the research data (2019).

After collecting the data for the formation of the table with the total costs of each
client, which includes the costs with direct material, direct labor and indirect costs, an
analysis is necessary in order to compare the values found with market ones. For this,
research on price formation is essential first, demonstrated in the following paragraph.

4.4 PRICING

The methodology used in calculating the price was the Mark-Up, taking into account a
profit margin of 20%, this is the margin expected by service companies according to Sebrae.
This resulted in a value of 1.25 for the first Mark-up to be used: I. 100% - 20% = 80%; and,
II. 100/80 = 1.25.
Then a second Mark-Up is calculated based on the tax rate of the accounting office,
which, by being an opt-in for Simples Nacional, is 6%, referring to federal taxes (PIS,
COFINS, CSLL AND IRPJ), which represent 4%, and municipal (ISS), which represents 2%:
I. 100% - 6% = 94%; and, II. 100/94 = 1.0638.

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.
Then, the price must be calculated using the service cost multiplied by the two Mark-
Up: (Service cost x Mark-Up 1) x Mark-Up 2 = Price, thus reaching the final result of the
Calculated Price.

4.5 COMPARISON BETWEEN PRICES

In sequence, the data obtained were compared with the amounts actually charged by
the office, according to Table 7.

Table 7 - Calculated Price x Price

Calculated Price Price Difference
Companies
(in R $) (in R $) (in R $)
Customer 1 667.45 477.00 190.45
Client 2 139.93 100.00 39.93
Client 3 419.78 300.00 119.78
Client 4 350.35 250.38 99.97
Customer 5 1268.15 906.30 361.85
Client 6 2002.34 1431.00 571.34
Customer 7 1334.89 954.00 380.89
Client 8 699.63 500.00 199.63
Client 9 1267.73 906.00 361.73
Client 10 419.78 300.00 119.78
Customer 11 1399.26 1000.00 399.26
Client 12 279.85 200.00 79.85
Customer 13 139.93 100.00 39.93
Customer 14 667.45 477.00 190.45
Customer 15 139.93 100.00 39.93
Customer 16 419.78 300.00 119.78
Customer 17 661.85 473.00 188.85
Customer 18 1334.89 954.00 380.89
Customer 19 615.67 440.00 175.67
Customer 20 1323.70 946.00 377.70
Customer 21 1268.15 906.30 361.85
Customer 22 634.07 453.15 180.92
Customer 23 699.63 500.00 199.63
Customer 24 1049.44 750.00 299.44
Customer 25 667.45 477.00 190.45
Client 26 667.45 477.00 190.45
Customer 27 634.07 453.15 180.92
Client 28 279.85 200.00 79.85
Client 29 699.63 500.00 199.63
Client 30 839.56 600.00 239.56
Customer 31 2002.34 1431.00 571.34
Client 32 667.45 477.00 190.45
Client 33 634.07 453.15 180.92
Client 34 1334.89 954.00 380.89
Client 35 667.45 477.00 190.45
Client 36 279.85 200.00 79.85
Client 37 279.85 200.00 79.85
Client 38 699.63 500.00 199.63
Client 39 839.56 600.00 239.56
Source: Prepared by the authors based on the research data (2019).

After comparing the price charged and the price determined by the study, there is a
significant difference between the ideal amount to cover costs and reach the estimated profit
and the current fees charged, showing the need for increased charges.

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Costs and Price Formation of Accounting Services: A Study with an Accounting Office in
Maceió / AL.

5 FINAL CONSIDERATIONS

The study aimed to determine costs and to form the prices of accounting services
provided by an accounting office, located in the city of Maceió. In addition to the contribution
to learning, the present work provided the entrepreneur, owner of the object of study, a
projection to implement a new profit margin in his accounting office.
When analyzing all the stages of the data collection process, it was found that the
company does not fit the market expectation for service companies, and this perspective is to
achieve a profit margin of 20%. With the results of the study, the company obtained the
necessary information to implement the new selling price of its services. It was found that the
company can increase the price of its services by 40% in order to achieve the expected profit
margin.
As for the suggestion for new research articles, this is a very relevant area with great
applicability and interest for entrepreneurs. Therefore, there is the suggestion for other
research in the area of costs, as it has a lot to evolve and add the management of a company.It
depends on all accountants to know how to sell their services and how to promote them, so
that it is valued by customers. For this, they must be informed and updated whenever
possible, as it is for thesearch for learning that will establish a more honest and humane
society.

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