Methods of accounting for production costs

Cost accounting methods include the collection of information on costs (due to the implementation, production and purchase of services or products), an analysis of the total value and the definition of methods that allow you to calculate the cost price of any kind of product or service fairly accurately. The use of these or other specific methods and techniques is determined by the appropriate policies of the organization. This policy is formed directly depending on the nature of the economic activity of the enterprise.

Cost accounting methods are part of one of the structures of the accounting system. Along with this, the production and accounting cost accounting are interrelated with each other. This is due to the fact that there are common procedures for processing business transactions documented, an assessment of the cost of procedures. In this case, the cost accounting methods become managerial.

When converting data into the management information base and supplementing it with operational information, internal reporting of persons responsible materially, a single integrated information system is formed. It allows you to provide the most efficient cost management.

To create a rational organization of a cost management system, not only the cost accounting methods, but also the calculation and accounting objects, the calculation units and methods for calculating the cost of production are important.

To the object of calculating the cost price is the product of production at different stages of readiness.

To reflect costs in accordance with the choice of this or another object of accounting, different methods can be used.

A simple way to use for simple production. Such a production has several distinctive features. In particular, there is a small and homogeneous product range, which is obtained as a result of a short one-stage process.

The order method is applied in industries for which individual orders are characteristic. In accordance with them, the grouping and localization of direct production costs are carried out. Until the end of the order, the costs for it are incomplete production. After its delivery (regardless of the duration of execution), costs are the cost of finished products.

In mass production, a crocheted cost accounting method is used. The main feature here is the production of products through the consistent processing of materials and raw materials in semi-finished products, and then - into the finished product. At the same time, cost accounting is carried out in accordance with the redistribution (workshops) and (where possible) the types of goods produced. Are also taken into account the costs that are associated with the operation of the equipment. They are accounted for and distributed throughout the shops in accordance with the type of product.

The non-process cost accounting method allows to determine the cost price of products produced in one or several technological stages (processes). The essence of this method is that costs follow the products along the production chain. In other words, at the end of any operation, there is an accumulation of costs. Their volume corresponds to the standard or average standard size.

In some enterprises, a boiler method can be used to reduce labor input for accounting. In this case, the definition and systematization of costs is carried out throughout the enterprise, shop or product groups as a whole.

The regulatory system provides for factual accounting with the subsequent determination of deviations from the approved norms, as well as the identification of the reasons for these deviations.