In brief about the types of accounting
It is impossible to imagine a manufacturing enterprise that does not take into account the costs of manufacturing products. Especially in our country, where the list of expenses taken to reduce the tax base is tightly regulated by the Tax Code. Accounting for production costs exists in three types: tax, accounting and management. Which is the most important - it is pointless to argue, because each pursues its goal and meets its tasks. Without tax accounting, the enterprise runs the risk of failing as a result of a tax audit. Without accounting - also runs the risk of failing, because for non-compliance with the requirement to maintain accounting Code of Administrative Offenses provides a very serious liability in the form of fines. And without the management accounting, the company's activities can stop simply because unrecorded expenses exceed the incoming revenues. In this article, we will focus on the management accounting of production costs.
Management accounting - is it simple?
All three types of accounting are closely interrelated. Management may contain elements of both tax and accounting. One of the main objectives of management accounting is the systematization of costs, the so-called cost analysis for various characteristics. I will give an example of such a classification.
- On the economic role that they play in the production process, costs are divided into overhead and basic. The main ones are those without which one can not do without. They form the prime cost of production. Overheads - all the rest beyond the main ones - are the costs associated with the activities of management and maintenance personnel.
- Direct and indirect costs are divided in relation to the attribution to the cost of the product. The same division of costs is also indicated in the Tax Code. Direct - these are those that, according to the primary accounting documents, can be attributed to the process of manufacturing a particular type of product. With indirect costs, this can not be done( these include, for example, utility costs, administration salaries).They are distributed proportionally between types of commodity output.
- Depending on the volume produced, costs are divided into conditionally variable and conditionally-constant. The magnitude of the former varies in proportion to the volume of output, in contrast to the second quantity, the size of which remains unchanged.
- Depending on the time of occurrence, expenses are divided into future periods and current expenses. In this accounting of production costs, managerial echoes with the accounting.
- On the basis of expediency, expenses are divided into productive and non-productive. The latter are associated with losses in the form of marriages, downtime, product damage.
- In connection with production costs are divided into production and sales costs.
Synthesis and cost analysis of the
Synthetic accounting of production costs represents the breakdown of costs by group, depending on the nature of the costs. For example, there are synthetic accounts for which material costs are collected - this is account 10 "Materials", 28 "Marriage in production", 70 "Wages."To the account 10 additional synthetic sub-accounts can be opened, for example: 10-1 "Raw materials and materials", 10-3 "Fuel", 10-5 "Spare parts".And already each of these synthetic sub-accounts has in its content the analyst on the costs for a specific nomenclature of materials. For example, account 10-3 contains articles "Diesel fuel", "Gasoline AI-92", "Gasoline AI-95", etc. But accounts 28 and 70 are conducted with a direct analytical account. Analytical accounting of production costs for specific items of costing - individual products, product groups, semi-finished products, works and services, their cost is determined on these accounts. The method of accounting for costs in calculating accounts depends on the nature of the products produced. If the main object of accounting is an order - apply orderly, if it is impossible to determine the amount of costs for an order, and production is continuous - apply a process pricing procedure. Accounting for production costs by processes allows you to determine the cost price of the produced unit of goods at different stages of production until it is recorded as a finished product.