Administrative expenses - it is necessary for management of the organization means that form part of the running costs of the company and affect the formation of the cost of production.
in accounting management costs are reflected in the debit account general business expenses.They can also be viewed as recurring expenses that are not related to the production process and necessary to maintain the property and financial complex of the enterprise in the reporting period.In this case, they are referred to operating expenses or the same - a loss of the company.
Administrative expenses include salaries and bonuses of management personnel, travel expenses, postage, office needs, transportation and maintenance of buildings for administrative purposes, the cost of depreciation, office maintenance (rent, utilities, communications), third-party services (insurance,legal, auditing), and others. The salary is determined in accordance with staffing, office and postage is 2-3% of the salary management personnel.The cost of maintaining the buildings is calculated similarly to shop expenses (electricity, water, heating).In the current repair have 3%, equipment - 7% of their value on the balance sheet.Depreciation charges are equal to 6.5% to 6.1% of factories and workshops for the cost of the basic means of economic and administrative purposes.
budget management costs now precisely calculated to ensure its normal operation.Administrative expenses are planned using several methods.The first (traditional) - provides for limitation of this type of expenditure percentage of the salary fund of key staff.The second ("made by") - based on the annual indexation of expenditure according to their growth rates over the period.It is also possible to plan in conjunction with the final result of the activity.This method is the most effective, but unlike the West in Russia is almost never used.
In many firms planning management costs stretched for several months.The development of a reliable budget - an event rather labor and time consuming, because harmonization is activated when a lot of participants.
Administrative expenses directly to the core (industrial, commercial) activities of the company are not related.However, in accounting reflect their debit accounts Expenses General.If the accounting policy of the enterprise allows to include such costs are only partially in the cost of its production, it is allowed to write them with certain transactions.
Administrative expenses are planned in a separate budget, are not linked to volumes of production or sales, are calculated independently of the dynamics of the company's income.The majority of these expenses relate to a limited type costs.They are divided into costs linked to the assets of the business, and the costs associated with its development.The first group includes items such as depreciation, expenses for the maintenance of the equipment, lease payments, and so on. They are planned in conjunction with the cost and service life of fixed assets.The second part (salaries of managers and other professionals, engineers and technicians and management personnel, their representative, travel, transportation and other expenses) are planned individually for each company.
Administrative expenses should be required to be documented.These documents are payment orders, receipts, account cash warrants.Without these documents the organization has no right to take account of administrative expenses for taxation.
