In the accounting system of cost formationon production of products is one of the main mechanisms in any enterprise. It is from the proper distribution of funds that the profitability of future production and the receipt of income from products depend. Accounting for the cost of production is the most important part in calculating the cost of goods produced. In view of the fact that the management of the enterprise independently determines the market value for its products, the calculation of costs and production costs, especially its correct methodology, serve the active growth of the enterprise and its profitability.
When accounting for production costsproducts, the management of the enterprise, and also, first of all, the accountant, can determine how high the level of costs, the cost is calculated, and subsequently the final price of the goods on the market. Analyzing all the data obtained, we can say how promising the enterprise will be and what profit is expected.
Some elements of accounting are strictly controlledstate orders for the further registration of taxes from the profit of the enterprise. In order to understand what a cost accounting for production is, it is necessary to consider the basic principles of accounting for these very costs.
The main objective of each individual enterpriseis the constant growth of profit and independence of the enterprise on the market among other competitors. This is the main reason why the cost of production is recorded. That is, the accountant carefully notes all costs that directly or indirectly affect the cost of goods. This is the purchase of raw materials, materials, fuel and electricity costs, workers' wages and other types of production services. Among other things, it can include the cost of VAT, equipment wear, deductions to the insurance fund, rental of premises and other variable types of costs.
It should be noted that the cost of productionThe only influence is the documented accounting of all costs incurred in the production process. The same expenses are divided into two separate units: these are direct costs for the manufacture and sale of goods and other expenses.
In order to determine how much money can beit is necessary for the enterprise to manufacture, the accountant conducts the primary accounting of production costs. The approximate cost per unit of output is calculated and the average cost is predicted. This is called the planned and actual cost price.
Accounting of production costsis carried out by several methods: as it was said before, the planned calculation for a certain period of time is made, as well as the estimated one for one-time production, if any. Then, at the end of the reporting period, a summary is made, the actual accounting of costs for production, where unplanned expenses are credited for the month.
Also, the depreciation of the mainequipment involved in the production process. As the equipment begins to break down over the years, the company's management is obliged to take care of its replacement, and the purchase of new equipment is a new expense. Therefore, in order for the enterprise to have funds to purchase equipment, the state provides for depreciation charges to be included in the cost of goods.
All other expenses of the enterprise, not related toto production of goods, are accounted for under other items of financial statements. Thus, the report reveals indicators that indicate the total profit and expenses deducted from this profit.
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