Expenses of the enterprise

The costs of the enterprise are the costs and losses that are incurred in connection with the implementation of its core business. As a rule, they form a form of reduction or outflow of the asset. The expenses of the enterprise are reflected in the reporting documents on losses and profits in accordance with the direct link between the receipt of funds for specific items and the costs incurred. Such a reception is called the matching of incomes and costs. In the reporting, thus, incomes and accounting expenses for their reception are correlated.

In accordance with the accounting technique, costs should be accumulated in the corresponding accounts: "materials", "payroll", "depreciation", "main production" and "finished products". These funds should not be written off to the implementation account until such time as the services, works, products with which they are interconnected will not be realized. Only at the time of sale, the company recognizes its profits and the associated part of the costs. Concerning the "sale" account, in essence, the costs of the enterprise reflect the cost of the goods sold.

In accordance with the place of origin, costs are grouped by shops, factories, sections and other structural divisions of the company. Such consolidation is necessary for the formation of accounting in accordance with the responsibility centers and the installation of the production cost of services, works or goods.

The cost carriers are those services, works or products that are intended for sale.

By type, the costs of the enterprise are divided by counting items and economically homogeneous components.

Management accounting is characterized by a very diverse classification, which depends on the task that needs to be addressed. The main of them include:

- calculation of the cost price of the manufactured goods and determination of the amount of income received;

- Planning and decision making;

- regulation and control over the activities of the responsibility centers.

The solution of each task corresponds to a certain classification of costs. So, in order to calculate the cost of a manufactured product and determine the amount of income received, costs are divided into:

- direct and indirect;

- expired and incoming;

- complex and one-component;

- non-production and production (included in the cost of goods);

- one-time and current;

- basic and overhead costs.

For planning and decision making, the following costs are allocated:

- conditionally-constant, variable, constant, conditionally-variable;

- taken and not taken into account in assessments;

- Imputed;

- irretrievable;

- unplanned and planned;

- incremental and limiting.

To ensure the functions of regulation and control in management accounting allocate unregulated and regulated costs. Particular importance is given to adjusting costs in accordance with the actual production volume, that is, the formation of flexible estimates.

The main costs of the company include all the resources. This category includes objects of labor in the form of raw materials, purchased semi-finished products, basic materials. The main costs include depreciation of fixed assets, wages of key employees, along with charges on it, and so on. The consumption of all these resources is related to the production of goods (the provision of services).

Formation of overhead costs is due to management functions, which, in accordance with their purpose, role and nature are different from the functions of production. These costs are usually associated with the management and organization of the company and are considered indirect in accordance with the method of assigning them to the carrier (the object of accounting).