Methods of accounting for production costs

In accordance with what productsis produced at a particular firm, what are its volumes and technical characteristics of complexity, depending on the degree of complexity of the production and technological processes, one or another method of accounting for production costs is used. In modern analytical practice, the most frequently used in enterprises are the following.

Simple, or, as it is still called in the literature,A one-way method is used in those types of production activities where the work in process is not complete or its share is negligible. Examples of such industries and enterprises can be those that are engaged in coal mining.

The essence of this method is the following: the cost of production is calculated by dividing all the total costs by the physical quantities of the products produced.

Practical methods of cost accounting forProduction includes a custom method. It is most often used at heavy engineering enterprises, because the object of accounting is one separate order, and such enterprises are classified as small-scale ones. The method is also quite common in the analysis of experimental design work, the production of which is of a single nature. When using this method to calculate the actual cost price orders should provide for the amount that is planned by the production plan for a month. And in the production of large aggregates, orders can be formed for the production of their individual units. Unlike what other methods of accounting for production costs suggest, with this method, indirect costs should correspond to the distribution base established at the enterprise. The main feature of it is to determine the cost of the fact of fulfilling the order by dividing the cost by the value of the production order completed (in units of output).

The cross-sectional method is used, as a rule, forenterprises of light and food industry, for example, in the production of sausage products. There are two main types of cost accounting - semi-finished and semi-finished. When using the first, the output of each production cycle is largely a semi-finished product for the subsequent, and therefore can be used as an end product even before the production cycle is completed. With this technique, the cost of semi-finished products, as suggested by the methods of accounting for production costs, is reflected in a special article.

The normative method takes into account that the formation ofthe cost of production at large-scale production enterprises is significantly different from those considered above, and therefore the accounting methodology here also has its differences. First, this method is most effective for manufacturing enterprises, where there is a large-scale production (for example - furniture industry). And secondly, the analysis of the cost estimate for production should be of the nature of monitoring, a constant accounting for the dynamics of deviations from the accepted standards of costs.

A distinctive feature is thatIt is necessary to differentiate actual costs, and those that are defined by established norms. This is justified by the fact that any change in norms inevitably entails a change in the magnitude of costs.

At the same time, the normative method hasSome limitations that can be attributed to its shortcomings. So, if the general economic situation is unstable, then naturally, about any innovations and introduction of advanced technologies and speech can not be. Therefore, there will be no grounds for applying an effective regulatory method either.

As we see, any of the methods considered hascharacteristic only to him analytical approaches to the accounting of production and ways of allocating costs. The totality of these methods in the analysis is supplemented by the evaluation of the work in progress.