This article explores the concept of costs in hotel activities. Features of the hotel's activities are revealed. It is noted that the cost of services provided in accordance with international standards consists of three categories, including direct material costs, direct labor costs and overhead costs. In the process of research, the structure of overhead costs of hotel operations was developed. A three-step methodological procedure for allocating overhead costs to cost objects in hotel operations, a method of costing the cost of one seat in hotel operations, and accounting records for accounting for overhead costs in hotel operations are proposed.

In this article, based on the analysis of industry sources, definitions of the concepts "production costs", "product cost", "cost of convertion" were developed, and a system of production costs and cost indicators was developed. It was recommended to include working accounts related to the cost of production in the working accounts plan in the organizations transitioning to IFRS and accounting developments related to the connections of these accounts. Based on the requirements of international standards, it was proposed to include other overhead costs, i.e. sales costs, in the cost of finished goods if they are related to the movement of inventories (in cases not related to the sales process).

The article analyzes the theoretical and methodological foundations of overhead cost allocation. The stages of primary and secondary allocation and their significance in determining product cost and substantiating managerial decisions are examined. Based on the principles of cause-and-effect, fairness, consistency, and efficiency, the criteria for optimal cost allocation are identified. Furthermore, the necessity of implementing multi-criteria and adaptive allocation models in modern production conditions is emphasized. The research findings enhance the accuracy of product costing, improve the assessment of resource utilization efficiency, and expand the opportunities for substantiating managerial decisions.