Accounting for the cost of production is primarily focused on the management of the company, managers and promoters.Analysis of the account allows you to develop uniform and optimal approaches for enterprise management and production processes that will reduce costs and, accordingly, will increase the profit.
Accounting for the cost of production can be the basis for such areas:
Prediction - Analysis of the current and past changes in the cost of production and the construction of the potential costs and changes in the future;
In determining the cost of production output requirements of companies;
analysis in costs of production and the search for opportunities and provisions to reduce costly parts;
Regulation and control of the enterprise, and the adoption on the basis of management decisions.
Accounting for the cost of production allows us to solve a number of problems.
First is production costs.Which actually consists of the cost of production and sales.Calculation of the index as cost is a key factor that determines the profitability of the enterprise.
objectives in accounting on the basis of the production costs are considered - the extent and range of products manufactured by the enterprise, its quality of work performed and services directly and actual production costs, enforcement budgets for production maintenance and management, evaluation of resultsof structural units of the company and as a result the search for mechanisms to reduce production costs.
Accounting for production costs and its classification.
include the cost of production can be identified synthetic account of the cost of production which is carried out in a specific pattern in stages, taking into account all the primary costs and for their intended purpose.
and based on the data of this type of accounting is performed analytical accounting costs.This type of account the cost of production is organized according to the standing objectives of accounting and control in the context of synthetic accounting.
The rest of the production costs are grouped by certain groups.
The first group - a major cost.This part of the costs associated with the process using raw materials and other overhead cost.
second group is overhead.This type is formed in the costs due to the process of the organization and maintenance of production, as well as management.
Just keeping production costs and considering the so-called singletons costs are denominated in the same element of costs - wages, etc.
addition, there are costs and complex.This type of costs and expenses may comprise multiple items.
Just shape the impact of costs on the cost of production and the production process are direct and indirect costs.Direct call that part of the costs which directly affect the cost of the formation (basic and raw materials, the production of marriage, etc.).Indirect costs do not relate directly to the cost of specific types of products.They are distributed arbitrarily determined and overhead, general, Non-manufacturing costs.
Just for permanence distinguishes variable costs and relatively constant.The difference between them lies in the change in the magnitude of these costs.If the variables are directly dependent on production volumes, the second semi-permanent change under the influence of overhead and general running costs.
thus keeping the cost of production, manipulating all the above named classes, types and categories of expenses as a result gives a clear and graphic picture from which it is clear the magnitude of these costs, and which segment is the production of a large amount of expenses.
