Time costs are taken into account when making management decisions. Imputed (imaginary) costs
Accounting costs at the enterprise
Abstract >> Accounting and auditStudy of entities costs and their classification v accounting managerial accounting... The tasks are to study the concept costs, their classification, grouping, and also consider modern models accounting costs ...
Accounting managerial accounting (9)
Abstract >> Accounting and auditAND managerial accounting……………………………………………………………………………….9 1.3. Classification costs and their use in the system managerial accounting…………………………………………………………..17 1.4. Classification methods accounting costs and peculiarities of conducting accounting accounting costs ...
Accounting managerial accounting (12)
Abstract >> Accounting and auditCharacteristics of financial and managerial accounting……. … 7 1.3. Classification costs and their use in the system managerial accounting ..11 1.4. Classification methods accounting costs and peculiarities of conducting accounting accounting costs, finished products ...
Characteristics of objects accounting managerial accounting... The relationship of control objects and
Coursework >> Accounting and Auditing... managerial accounting on the efficiency of the enterprise economy. For sustainable management costs there is an obvious need for their classification ...
The essence and main tasks accounting managerial accounting
Abstract >> Accounting and audit... The essence and main tasks accounting managerial accounting The essence accounting managerial accounting To date, there is no single definition managerial accounting ... accounting costs has a scientifically based classification costs. ...
Cost classification.
Scientifically based classification of costs is of great importance for the correct organization of cost accounting. Manufacturing costs are grouped by place of origin, responsibility centers, cost objects, and cost types.
At the point of origin, costs are grouped by production, workshops, sections and other structural divisions of the enterprise. This grouping of costs is necessary for:
- control over the efficiency of structural divisions and the enterprise as a whole;
- distribution of overhead costs between separate types products when calculating the cost of products (works, services).
Costs are allocated to responsibility centers (enterprise segments) to accumulate cost data and control budget deviations. A cost center is an organizational unit or area of activity where it is advisable to accumulate information about the costs of acquiring assets and expenses.
Cost carriers are the types of products (works, services) of the enterprise intended for sale. This grouping is necessary to determine the cost of a unit of production (work, services).
By type, costs are grouped by economically homogeneous elements and by calculation items in accordance with the Regulation on the composition of costs for the production and sale of products (works, services) included in the cost of products (works, services).
For the purposes of management accounting, costs are divided into categories depending on which management problem needs to be solved.
Classification of costs depending on the objectives of management accounting
Tasks | Cost classification |
Calculation of the cost of goods manufactured, assessment of the cost of inventories and the resulting profit | Inbox and expired Direct and indirect Basic and consignment notes Included in the cost price (production) and costs of the reporting period (periodic) Single element and complex Current and one-time |
Adoption management decisions and planning | Constants and variables Accepted and not taken into account in assessments Irrevocable and returnable Imputed (lost profits) Limit and incremental Planned and unplanned |
Control and regulation | Adjustable and non-adjustable |
Fixed and variable costs.
They are used when analyzing break-even and related indicators, as well as when optimizing products.
In relation to the volume of production or sales (level of business activity), costs are divided into "fixed" and "variable".
Variable costs vary in proportion to production or sales, and unit costs are constant. An example of variable cost for a merchant is the cost of purchased goods, commissions, and other sales-related expenses that vary in proportion to the change in volume of sales.
Dynamics of total (a) and unit (b) variable costs.
SPR - total variable costs, rubles. Uper - specific variable costs, rubles.
Fixed costs the sum does not change with changes in the level of business activity, but calculated per unit decrease with an increase in production or sales. Examples of fixed costs are rental costs, administrative staff salaries, professional services... The total amount of these expenses is relative and does not depend on the volume of sales.
Dividing expenses into variables and fixed ones, you need to use the concept " area of relevance", which retains a special relationship between the planned relationship of revenue and costs. So fixed costs are constant for a specific period, for example one year, but over time, due to external factors, they can increase or decrease (change in the property tax rate, etc.).
Dynamics of total (a) and unit (b) fixed costs.
Spost - total fixed costs, rubles. Upost - fixed costs per unit of production (specific), rub.
Some types of costs cannot be strictly defined in relation to the volume of production as variables or variables. Therefore, in management accounting, an additional group of conditionally variable or conditionally fixed costs is distinguished. These costs have both fixed and variable components. For example, the costs of maintaining a warehouse:
- A constant component - warehouse rental and utilities
- Variable component - warehouse handling services (operations to move commodity items)
When classifying costs, variable and fixed components are separated into separate items of expenditure, therefore, conditionally variable or conditionally fixed costs are not separated into a separate group.
Costs taken into account and not taken into account in the assessment.
The process of making a managerial decision involves comparing several alternative options in order to choose the best. The indicators compared in this case can be divided into two groups: the first remain unchanged for all alternatives, the second vary depending on the decision made. It is advisable to compare only the indicators of the second group with each other. These costs, which distinguish one alternative from another, are called relevant. Only they are taken into account when making decisions.
Example. An enterprise selling products on the foreign market purchased basic materials for the amount of 500 rubles for future use. Subsequently, due to a change in technology, it turned out that these materials are of little use for their own production. The products made from them will be uncompetitive in the external market. However, the Russian partner is ready to buy products made from these materials from this enterprise for 800 rubles. In this case, the additional costs of the enterprise for the manufacture of products will amount to 600 rubles. Is it advisable to accept such an order?
Elapsed expenses for the purchase of materials in the amount of 500 rubles. have already taken place. They do not influence the choice of the decision, they are not relevant. Let's compare the alternatives in terms of relevant indicators (table).
By choosing alternative 2, the company will reduce its loss from the purchase of materials it does not need by 200 rubles, reducing it from 500 to 300 rubles.
Approaches to the analysis of cost reduction.
Cost structure analysis
Building a cost management system.
- Cost classification.
- Methodology for allocating costs by divisions, types of activities and types of products:
- bases and principles of cost allocation;
- formats of primary reporting forms on costs;
- methodology for filling out primary reporting forms;
- a method for processing primary reporting forms, which allows you to distribute costs between types of products, accounting objects and types of activities;
- formats for management cost reports.
- The choice of the costing method.
- Consider cost reduction opportunities.
- Conducting a cost-volume-profit analysis.
The method of calculating the cost price for variable costs ("direct-costing").
Its essence lies in a fundamentally new approach to the inclusion of costs in the prime cost. Costs are divided into fixed and variable costs. Only variable costs are included in the cost price. To determine it, the amount of variable costs is divided by the amount of products produced and services provided. Fixed costs are not included in the cost calculation at all, but as expenses this period are written off from the profit received during the period in which they were produced. In other words, before calculating operating profit the indicator of the company's marginal profit is formed, and only then, by reducing the company's marginal profit by the amount of fixed costs, the financial result is formed.
There are many opinions about the legitimacy of such an incomplete inclusion of costs in the cost price. International standards accounting prohibit using this approach to compose financial statements companies in financial accounting. The main argument against this is the thesis that fixed costs are also involved in the process of creating products. But on the other hand, it turns out that fixed costs are involved in different ways in creating the cost of different volumes of the same product, and it is almost impossible to calculate the actual participation of fixed costs in creating the cost, so their cost is simply written off from the profit received by the company.
Below is a brief summary of the direct-costing and absorption-costing costing methods.
"Direct-costing" | "Absorption-costing" |
Based on the consideration of specific production costs. Fixed costs are attributed in total to the financial result and are not allocated to types of products. | It is based on the distribution of all costs included in the cost price by product type (calculation of the total cost of production). |
Assumes splitting costs into fixed and variable costs. | Assumes the division of costs into direct and indirect. |
It is used for more flexible pricing, as a result of which the competitiveness of products increases. It makes it possible to determine the profit that the sale of each additional unit of production brings, and, accordingly, the ability to plan prices and discounts for a certain volume of sales. | It is used most often in Russian enterprises... Mainly used for external reporting. |
Stocks of finished goods are estimated only at direct costs. | Warehouse stocks are valued at full cost, with fixed production cost components included. |
Margin profit is the excess of sales proceeds over all variable costs associated with a given sales volume.
Therefore, the profit margin method is based on the following formula:
Marginal profit = Revenue from product sales - Variable costs for the same volume of products
If fixed costs are subtracted from the marginal profit, then we get the operating profit:
Operating Profit = Profit Margin - Fixed Cost
Example. The difference in the influence of accounting methods for full and variable costs on the cost of goods sold. Let the direct material costs for a product be $ 59,136, direct labor costs $ 76,384, production costs- $ 44,352, fixed overhead costs - $ 36,960. During the year, 24,640 product units were produced. There was no work in progress either at the beginning or at the end of the reporting period. The selling price per unit is $ 24.50, variable selling costs per unit is $ 4.80. The recurring selling expenses for the period were $ 48,210, and the recurring administrative expenses were $ 82,430.
Variable cost accounting | Full cost accounting | |
Unit cost | ||
Direct material costs ($ 59,136: 24,640 units) | $2,40 | $2.40 |
Direct Labor Cost ($ 76,384: 24,640 units) | 3.10 | 3.10 |
Variable overhead costs ($ 44,352: 24,640 units) | 1.80 | 1.80 |
Fixed overhead costs ($ 36,960: 24,640 units) | - | 1.50 |
Total unit cost | $7,30 | $8.80 |
Balance of finished goods at the end of the year (2,640 x $ 7.30) (2,640 x $ 8.80) | 19,272 | 23,232 |
Cost of sales (22,000 x $ 7.30) (22,000 x $ 8.80) | 160,600 | 193,600 |
36,960 | - | |
Total costs reported in the income statement | $197,560 | $193,600 |
Total costs to be accounted for | $216,832 | $ 216,832 |
Profit and Loss Statement (Margin Approach).
Revenues from sales $539,000
Variable part of the cost of goods sold
- Variable part of the cost of goods for sale $179,872
Minus Final balances of finished products $19,272
Variable part of the cost of goods sold $160,600
Plus Variable Selling Costs (22,000 x $ 4.80) $105,600 $266,200
Margin profit $272,80 0
Less Fixed costs
- Fixed overhead costs $36,960
Fixed business expenses $48,210
Permanent administrators costs $82,430 $167,600
Operating profit (before tax) $105,200
Example. Unit price - 10 thousand rubles, variable costs per unit - 6 thousand rubles, constant total production costs amounted to 300 thousand rubles. for the period, fixed general operating costs amounted to 100 thousand rubles. over a period.
Period 1 | Period 2 | Period 3 | Period 4 | Period 5 | Period 6 | |
Sales volume (pcs.) | 150 | 120 | 180 | 150 | 140 | 160 |
Production volume (pcs.) | 150 | 150 | 150 | 150 | 170 | 140 |
The method of calculating the cost at full cost.
(thousand roubles.) | (thousand roubles.) | (thousand roubles.) | (thousand roubles.) | (thousand roubles.) | (thousand roubles.) | |
Period 1 | Period 2 | Period 3 | Period 4 | Period 5 | Period 6 | |
Prod. expenses | ||||||
Cost of goods sold | ||||||
Volume of sales | ||||||
Gross profit | ||||||
General economic. costs | ||||||
Operating profit |
Method of calculating the cost price "direct costing".
(thousand roubles.) | (thousand roubles.) | (thousand roubles.) | (thousand roubles.) | (thousand roubles.) | (thousand roubles.) | |
Period 1 | Period 2 | Period 3 | Period 4 | Period 5 | Period 6 | |
Stocks of finished products in the warehouse at the beginning of the period | ||||||
Prod. perm. expenses | ||||||
Stocks of finished goods in the warehouse at the end of the period | ||||||
Cost of goods sold at variable costs | ||||||
Fixed overhead costs | ||||||
Total productions. expenses | ||||||
Volume of sales | ||||||
Gross profit | ||||||
General economic. costs | ||||||
Operating profit |
Operating lever.
Imputed(imaginary) costs are present only in management accounting. They are added when making decisions in case of limited resources, but in reality they may not exist. In essence, this is the lost profit of the enterprise. They characterize the possibilities for using production resources that are either lost or sacrificed in favor of another alternative solution, if the resources are not limited, the imputed costs are equal to zero.
Example: The bakery oven operates at full capacity in three shifts and produces sliced loaves for 10 thousand rubles per week. The wholesale buyer offers the bakery a new weekly order for baking muffins, which will entail additional variable costs in the amount of 3 thousand rubles. What should be the minimum contract price?
By accepting the order, the bakery will give up the income of 10 thousand rubles previously received from baking loaves, i.e. in fact will incur losses of 10 thousand rubles. This amount must be taken into account by the company when discussing the terms of the contract. The contract price cannot fall below 13 thousand rubles. (10 + 3). At the same time, 10 thousand rubles. - imputed (imaginary) costs, or lost profits of the enterprise.
Incremental and marginal costs
Incremental costs are additional and arise as a result of the manufacture and sale of an additional batch of products. The decision rule for incremental costs / income is as follows: if additional income exceed additional expenses, then a decision should be made, otherwise - rejected.
Marginal (marginal) costs and revenues represent the additional costs / receipts for only one additional unit of output, while the incremental costs / receipts reflect the additional costs / receipts resulting from the release of a number of additional units of production.
It should be noted that incremental and marginal (marginal) costs and revenues are always relevant, since they are the result of a decision.
Planned and unplanned costs
Planned- these are costs calculated for a certain volume of production. In accordance with the norms, standards, limits, estimates, they are included in the planned cost of production. This includes all of the production costs of the organization.
Not planned- these are costs that are not included in the plan and are reflected only in actual cost products (losses from defects, downtime, etc.). When using the method of actual costs and calculating the actual cost, the accountant-analyst deals with unplanned costs.
Regulated and unregulated costs
Regulated costs are subject to the influence of the manager of the responsibility center; he cannot influence the unregulated ones. A manager's performance is measured by the ability to manage adjustable costs.
Controlled and uncontrolled costs
Controlled costs are amenable to control by the subjects of management, and uncontrolled ones do not depend on the activities of management personnel (for example, an increase in prices for resources).
Effective and ineffective costs.
Effective costs- as a result of these costs, income is obtained from the sale of those types of products for the release of which these costs were incurred. Ineffective costs- expenses of a non-productive nature, as a result of which income will not be received, since the product will not be produced. In other words, ineffective costs are losses in production (from rejects, downtime, shortages, damage to values).
Traditional methodologies for estimating and managing costs
V modern conditions management the process of making managerial decisions of a tactical and strategic nature is based on information about the costs and financial results of the enterprise. The consequence of these market requirements was the emergence in domestic practice of new, or relatively new, methods of enterprise cost management, such as: functional cost analysis, marginal analysis, standard cost system, direct cost, standard cost accounting method.
Functional cost analysis
FSA is a method for identifying reserves. It is based on the functions that the object performs, and is focused on the best methods for their implementation at all stages of the product life cycle (research and development, design, production, operation and disposal). Its main purpose is to identify and prevent unnecessary costs by eliminating unnecessary units, parts, simplifying the design of the product, replacing materials, etc. The FSA includes the following main stages:
1st stage: the stage of sequential construction of models of the FSA object (component, structural, functional); models are built either in the form of graphs, or in tabular (matrix) form;
2nd stage: the stage of researching models and developing proposals for improving the object of analysis.
Functional cost analysis allows you to perform the following types of work:
Determination and conduct of a general analysis of the cost of business processes at the enterprise (marketing, production and provision of services, sales, quality management, technical and warranty service and etc.);
Conducting a functional analysis related to the establishment and justification of the functions performed by the structural divisions of enterprises in order to ensure the release of high quality products and the provision of services;
Determination and analysis of basic, additional and unnecessary functional costs;
Comparative analysis of alternative options for reducing costs in production, sales and management by streamlining the functions of structural divisions of the enterprise;
Analysis of the integrated improvement of the results of the enterprise.
Margin analysis
A method for assessing and justifying the effectiveness of management decisions in business based on the causal relationship of sales volume, cost and profit and dividing costs into fixed and variable. Big role in substantiating management decisions in business, marginal analysis plays, the methodology of which is based on the study of the ratio between three groups of the most important economic indicators: costs, production (sales) of products and profits and forecasting the value of each of these indicators at a given value of others. This method of management calculations is also called break-even analysis or income assistance. Developed in 1930 by the American engineer Walter Rautenstrach as a planning method known as the critical volume schedule. It was first described in detail in Russian literature in 1971 by N.G. Chumachenko, and later - A.P. Zudilin.
The methodology is based on the division of production and sales costs depending on the change in the volume of production into variable and constant and the use of the category of marginal income.
Marginal income enterprises are revenue minus variable costs. The marginal income per unit of output is the difference between the price of that unit and the variable cost of it. It includes not only fixed costs but also profits.
Margin analysis (break-even analysis) is widely used in countries with developed market relations. It allows you to study the dependence of profit on a small range of the most important factors and, on the basis of this, control the process of forming its value.
The article is devoted to issues related to the classification of costs of an enterprise (organization), which are subject to assessment in management accounting, as well as the distribution of costs in order to provide the most complete information about the company's activities for management.
It is impossible to manage an enterprise relying only on financial or tax reporting... Imagine two firms that are exactly the same in terms of sales, margins, and costs. Suppose both companies do not have an outstanding balance at the time of reporting. accounts receivable... We can say that these companies are completely identical to each other, with the exception of one "small" difference: the "Fresh Wind" company sells goods, providing them for implementation, and the company " Cozy home»Sells exactly the same volumes of goods, but on pre-orders... It is clear that this difference is very serious. Will we be able to detect fundamental differences in approaches to doing business, relying solely on the financial statements of these companies? Of course not. Despite the fundamental difference between the way these companies do business, find traces of it in financial documents impossible. For full-fledged business management, there is management accounting.
Management reporting is called only that reporting that allows the head to make management decisions and does not require additional collection and analysis of data.
These features imply the formation of management reporting based on completely different principles compared to standard financial reporting. Let's look at an example.
Example 1
The management of the Fresh Wind company analyzes the success of sales in a retail store. In addition to information about the actual quantity of goods sold, which is in standard reports, for an adequate analysis of the situation, the following information is also required:
- whether the product was in stock during the entire analyzed period;
- whether it was put up for sale and fully presented in the window;
- whether there were any activities to promote this product;
- whether there have been significant movements of this product on the store's display shelves;
- whether this product has analogs-substitutes, whether their availability or prices for them changed during the analysis period;
- has the overall store traffic changed;
- whether there are competing products in the store, their prices, whether the prices for these products have changed;
- what are the costs of selling goods, etc.
Without this information, starting only from the "implementation report", the manager can make serious mistakes when making a decision.
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Allocation of costs
Of course, it is impossible to run a serious enterprise without adequate management reporting.
Let's start to consider the process of constructing management reporting with the distribution of costs in the enterprise, that is, linking costs (costs) to specific objects (goals) - without this it is almost impossible to obtain meaningful information. Having established that the distribution of costs is necessary to perform the function of maintaining accounts in management accounting, we can investigate the means by which the distribution of costs (classification) is carried out.
The essence of incoming flows, processes, procedures and outgoing flows of an organization is important for the distribution and classification of costs, which largely determines the costing methodology used by management accounting to work in various organizational environments.
The expenses of the organization often reach 95 kopecks for each ruble of revenue and other income. This value can fluctuate depending on the industry, the specifics of the enterprise, the nature of operations, but in general it gives an understanding that costs (costs) are the most important management factor.
Costs of elements of production recorded in the accounts financial accounting, are grouped in management accounting on various grounds so that it is possible to provide all the necessary information for making decisions on the regulation of activities. The key point to take into account in relation to cost allocation is its purpose (object) (cost objective), the identification of which is the starting point in the allocation of costs. Before calculating, you need to find out what and why should be calculated (see figure).
What to calculate? |
Why Calculate? |
|
Unit of product (service) - costing unit |
stock assessment / profit measurement; the basis for determining the selling price; private management solutions |
|
Structural divisions (for example, departments, stores) |
costs by structural unit or reflection of profitability; budget planning and control; special solutions (e.g. divestment) |
|
Competitive goods (services) |
cost reduction; comparison with own costs |
|
Other (for example, exclusive goods (services)) |
particular solutions (for example, direction development); budget planning and control |
Objectives (objects) of cost allocation
Therefore, the most important cost object is the costing unit ( cost unit), that is, a unit of product / service that is produced by an organization (or a subdivision of an organization). Costing unit(or units - for cases where more than one product / service is produced) should be an accurate reflection of the nature of the outflow (product) over which costs are allocated. If the costing area is determined incorrectly (or inaccurately), it is obvious that the costs will also be allocated incorrectly. And misallocation of costs can have serious consequences, for example, when the selling price is based solely on the value of the unit cost.
Example 2
An enterprise produces only one model of a computer - this model will be a costing unit. If an enterprise decides to produce several models, then each model will be a separate costing unit. If computers are produced in groups or in batches, each batch will be the costing unit.
________________________
The main problem with cost allocation is that there is often no clear link between a given cost and a given product. Therefore, in practice, a single factor in the distribution of all costs (especially indirect) accumulated in a particular department is often used.
The department in which costs are accumulated is called cost center... For example, a manufacturing floor is a manufacturing cost center, and accounting is a non-manufacturing cost center.
Depending on the method of recognizing costs in the income statement, they can be divided on product costs (inventory-intensive costs) and costs (expenses) of the period.
Period costs are recognized in the period in which they are produced and do not pass through the inventory stage (for example, administrative and selling expenses).
Administrative expenses related to implementation business transactions on the use of material, labor, financial and other resources in the process of enterprise management and are conditioned by its content as a single property and financial complex.
Business expenses associated with the sale of products (goods, works, services).
Cost classification
The general purpose of classifying costs, like any other classification, is to create an ordered structure, in this case, data about the costs of the organization. Without such a structure, efficient account management and cost linking to an object are impossible. Although the classification of costs is also carried out by financial accounting, it is not always acceptable to meet the information needs of management, moreover, it can lead to the adoption of an incorrect management decision.
Example 3
The Fresh Wind company produces air conditioners and fans. To assess the profitability of each product for the next year, special calculations were made (Table 1).
Table 1. Data for assessing the profitability of manufactured products |
|||
Indicator |
Air conditioners |
Fans |
Total |
Production / sales, units |
|||
Sales proceeds, rub. |
|||
Cost of sold products, rub. |
|||
Gross profit, RUB |
|||
Commercial costs, rub. |
|||
Administrative costs, rub. |
|||
Net profit (loss), rub. |
Based on these data, the company's management made a decision to discontinue the production of fans. At first glance, it may seem that stopping the production of fans from a financial point of view is justified, since the financial result of the next year will not decrease by the estimated amount of loss (24,000 rubles). But we must remember that the estimated loss is based on full costing principles. The opinion that stopping the production of fans will help to avoid a loss in the amount of 24,000 rubles is based on the assumption that all costs associated with the production of this product will also disappear. However, based on additional information we can conclude that this is not the case. Therefore, you should adjust the profit calculations by product and company as a whole in such a way that you can divide all costs into those that can be avoided and cannot be avoided (or specific to a given product and total costs). Only by doing this can the management of the company reasonably assess the profit impact of the proposed discontinuation of the product.
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The expenses of the organization are grouped in the context of elements that characterize the general picture - how much and what resources were spent during the reporting period. Elements of expenses correspond to the assets and liabilities of the organization: how many and what assets were spent, what expenses were incurred by increasing profits, what assets need to be restored to support operations in the following periods, how this affects the organization's cash flows, its financial performance and financial results.
Cost item (costs)- this is a grouping attribute of costs in relation to the method of including certain types of products, works, services in the cost price, to their place in calculation calculations. Cost items can be singleton(for example, labor costs of production personnel) and multi-element (for example, general production costs, including costs of materials, labor costs, depreciation, etc.).
The elements of expenses are strictly regulated by the Accounting Regulations “Organization's Expenses” PBU 10/99, approved by Order of the Ministry of Finance of Russia dated 05/06/1999 No. 33n (as amended on 04/27/2012), and the list of cost items into which expenses are regrouped elements, each organization sets independently.
Important!
The expenses (expenses) of the organization are recognized as a decrease in economic benefits as a result of disposal of assets ( Money, other property) and (or) the occurrence of obligations, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by the decision of the participants (property owners) (PBU 10/99).
Costs directly related to a specific product (work, service) or organizational unit are straight... Direct costs include direct material costs and direct labor costs. They are accounted for in the debit of account 20 "Main production" and they can be attributed directly to a specific product on the basis of primary documents.
Direct costs can be charged per unit cost. To increase the amount of direct costs between costs and a unit of cost must be a direct relationship.
Example 4
The labor costs of production workers are direct, since they can be directly related to the products produced. Research and development costs for a specific product are also direct costs because they relate to one product type (cost unit), but they are rarely included in the “normal” direct costs of a specific product for the purpose of making a decision, since they are not current production costs for individual cost units.
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Costs attributable to several products or departments at the same time are indirect... Indirect costs cannot be directly attributed to any product. They are distributed between individual products according to the methodology chosen by the organization (in proportion to the main wages production workers, the number of machine tool hours worked, hours worked, etc.), which should be spelled out in the accounting policy of the enterprise. Indirect costs are divided into two groups:
- overhead (production) costs — these are the general costs of organizing, maintaining and managing production. In accounting, information about them is accumulated on account 25"General production costs";
- general business (non-production) expenses are carried out in order to manage production. They are not directly related to the production activities of the organization and are accounted for at account 26 « General running costs". A distinctive feature of general business expenses is that they do not change depending on changes in the volume of production (sales). They can be changed by management decisions, and the degree of their coverage - by sales.
Example 5
The salary of a production supervisor and the costs of the HR department are indirect costs, because there is no direct connection between their work and the individual cost unit. In this case it comes on the cost of non-productive labor.
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For example, electricity costs for a business are indirect costs because there are several different products produced, therefore the total electricity costs must be allocated on some equitable basis across the different cost units.
Consider the distribution of costs for direct and indirect in the context of the production unit, excluding the indirect costs of service units.
Example 6
Suppose that we have the following data on the costs in the reporting period, incurred directly in the production workshop of the company "Lesnaya Yagoda", which produces jam and confiture (Table 2).
Table 2. Data on costs in the reporting period, incurred directly in the production workshop of the company "Lesnaya Yagoda" |
|
Indicator |
Amount, thousand rubles |
The cost of berries and sugar used to make jam |
|
The cost of berries and sugar used for the production of confiture |
|
Workshop lighting and heating costs |
|
Remuneration of labor of production workers employed in the production of jam |
|
Remuneration of labor of production workers employed in the production of confiture |
|
Payment for the labor of the security and cleaning service of the shop |
|
Depreciation of equipment and line No. 1 for bottling jam |
|
Depreciation of equipment and filling line No. 2 used for the production of confiture |
|
Amortization of the conveyor used to transfer jam and confiture jars to the packaging workshop |
We classify the expenses of the Forest Berry company into direct and indirect in relation to jam and confiture.
To do this, we will open two subaccounts to account 20 "Main production": subaccount 1 - "Jam" and subaccount 2 - "Confiture".
Sub-account 1 will include the following direct costs directly related to the production of jam:
- the cost of berries and sugar used for the production of jam - 5000 thousand rubles;
- wages of production workers employed in the production of jam - 3,500 thousand rubles;
- depreciation of equipment and line No. 1 for bottling jam - 1,500 thousand rubles.
Total for the amount of 10,000 thousand rubles.
Subaccount 2 will reflect the following direct costs directly related to the production of confiture:
- the cost of berries and sugar used for the production of confiture - 15,000 thousand rubles;
- remuneration of production workers employed in the production of confiture - 9,000 thousand rubles;
- depreciation of equipment and filling line No. 2 used for the production of confiture - 5000 thousand rubles.
Total for the amount of 29,000 thousand rubles.
Indirect costs incurred directly in the shop will be reflected on account 25 "General production costs":
- costs for lighting and heating of the workshop - 3000 thousand rubles;
- remuneration of the shop guard and cleaning service - 2000 thousand rubles;
- depreciation of the conveyor used to transfer jars of jam and confiture to the packaging workshop - 3,000 thousand rubles.
Total for the amount of 8000 thousand rubles.
These expenses are subject to distribution between jam and confiture, that is, they are debited from the Credit account 25 to the Debit of subaccounts 20-1 ("Jam") and 20-2 ("Confiture").
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It is possible to objectively describe the behavior of costs by studying their dependence on production volumes, dividing costs into fixed and variable ones.
Variable costs increase or decrease in proportion to the volume of production (provision of services, turnover), that is, they depend on the business activity of the organization. Both production and non-production costs can be of variable nature. Variable costs change with the level of business activity of a company - as it rises, so do variable costs.
Example 7
The cost of making windshields for automobiles in an automobile plant is variable. An increase in activity (car production) automatically means a proportional increase in the cost of producing windshields. The labor costs of production workers are also variable. An increase in the volume of work performed (increased activity) automatically causes an increase in wages. With an increase in business activity (car production), the variable non-production costs for windshield storage increase.
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Raw material costs are variable costs because each item requires a certain amount of material to be produced.
Electricity costs are also usually referred to as variable. If the activity of the enterprise increases, the consumption of electricity is likely to increase as well. Electricity costs can also be attributed to partially variable costs.
Telephone charges are partly variable costs. A permanent element is the subscription fee for the use of the telephone line, which is paid regardless of the number of calls made. The variable element is the additional charge for each call made or for a long-distance call.
Variable costs (costs) in the measure of their response to changes in volumetric indicators are divided into proportional, progressive and degressive.
The dynamics of costs and volumes can be characterized coefficient of behavior (response) costs(K), introduced by the German scientist K. Mellerovich:
K = Y / X,
where K is the coefficient of cost behavior;
Y- percentage of cost change;
X- percentage of change in production (sales).
A variety of variable costs are proportional costs... They are increasing at the same rate as the business activity of the enterprise. The cost behavior coefficient in this case will be equal to 1 (K = 1).
The costs that grow faster than the business activity of the enterprise are called progressive... The value of the coefficient of the behavior of these costs should be> 1.
The costs, the growth rate of which lags behind the growth rate of the business activity of the enterprise, are called degressive, the value of the response coefficient will be in the range from 0 to 1.
Consider the options for the possible behavior of costs and their classification on a conditional example (Table 3).
Table 3. Options for possible cost behavior and their classification |
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Option |
Change in total costs (costs),% |
Change in business activity (production (sales)),% |
Cost Behavior Coefficient |
Cost classification |
Variables proportional |
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Permanent |
||||
Variables degressive |
||||
Variable progressive |
So, production costs, which remain practically unchanged during the reporting period, do not depend on the business activity of the enterprise, are called fixed costs (in our example, option 2). Even if the volume of production (sales) changes, these costs remain unchanged. Fixed costs include the cost of wages of management personnel even with zero production (sales), depreciation deductions, rent, insurance payments, travel and other administrative expenses.
In practice, the management of the organization, on the basis of planned estimates, makes decisions in advance about the amount of fixed costs by group.
Rent is a fixed cost. The amount of rent paid by the enterprise does not change with the level of activity. The landlord will charge the same rent regardless of whether the business is producing 100 items or 1000. However, as business activity increases, the business may need additional areas(warehouse) for storing products, which will increase lease payments... Thus, the fixed costs (rent) will change with the change in the level of activity.
Labor costs are mostly fixed costs. Some element of variable costs may be contained in the payroll if management receives remuneration based on the achieved production volumes.
In practice, fixed and variable costs in their pure form are quite rare. Most of the costs have both fixed and variable components. Therefore, they talk about conditionally permanent or conditional variables costs. Conditionally fixed costs grow in leaps and bounds, that is, at a certain volume of output, these costs remain constant, and when it changes, they increase sharply. For example, to increase the number of products in the workshop, another machine is installed, but at the same time as the volume of production increases, fixed costs will increase due to depreciation deductions for the machine.
Variable costs characterize the cost of the product itself, all the rest (fixed costs) - the cost of the enterprise itself. But the market is not interested in the value of the enterprise - it is interested in the value of the product.
The total and unit costs are determined in relation to their indicators of the volume of production (sales). Total costs (costs) represent their total amount attributable to a given volume of production (sales) as a whole. Unit costs calculated as a share of costs per unit of production (sales), for example, per unit of production, per ton, etc. Unit costs can be calculated per one ruble of the cost of products sold or produced.
Features of the change in total and unit costs depending on the increase / decrease in the volume of production can be analyzed on the basis of the data presented in table. 4.
Table 4. Change in total and unit costs depending on the increase / decrease in the volume of production |
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Cost classification |
Increase in volume |
Reduced volume |
||
cumulative |
specific |
cumulative |
specific |
|
Permanent |
unchanging |
decline |
unchanging |
increase |
Proportional |
increase |
unchanging |
decline |
unchanging |
Degressive |
increase |
decline |
decline |
increase |
Progressive |
increase |
increase |
decline |
decline |
By technical and economic purpose costs are divided by:
- the main- costs that are directly related to the process of manufacturing products, performing work, rendering services (materials, wages and salaries of workers, wear and tear of tools, etc.). The main expenses are accounted for on the accounts for accounting for production costs: 20 "Main production", 23 "Auxiliary production";
- waybills- costs of management and maintenance of the production process (general production and general business costs). Overhead costs are accounted for on accounts 25 "General production costs", 26 "General business costs".
Incoming and expired costs are also distinguished. Incoming costs- these are the funds (resources) that have been acquired, are available and are expected to bring income in the future. In the balance sheet, they are reflected as assets.
If these funds (resources) during the reporting period were spent to generate income and have lost the ability to generate income in the future, then they go into the category expired. In accounting, the elapsed costs are reflected in the debit of account 90 "Sales".
The correct division of costs into incoming and outgoing costs is of particular importance for assessing profit and loss.
Productionexpenses are included in the cost of production. These are material costs, they can be inventoried. They consist of three elements:
- direct material costs;
- direct labor costs;
- general production costs.
Non-production costs (recurring) — these are costs that cannot be inventoried. The amount of these costs depends on the length of the period and does not depend on the volume of production. These costs include commercial and administrative costs, which are taken into account on account 26 "General business expenses" and account 44 "Sales costs". Recurring costs are always attributed to the month, quarter, year during which they were incurred. They do not go through the inventory stage, but immediately affect the calculation of profit. Thus, recurring costs are always outgoing, production costs can be considered incoming.
Single element Complex costs consist of several economic elements. For example, shop floor (general production) costs include almost all elements.
Such a grouping of costs with varying degrees of detail can be carried out depending on economic feasibility and leadership desires. For example, at enterprises with a high degree of automation, wages with deductions in the cost structure are less than 5%. At such enterprises, as a rule, direct wages are not allocated, but combined with the costs of maintenance and production management under the item “Added costs”.
The process of making management decisions involves comparing several alternative options among themselves. The compared costs can be divided into two groups: unchanged for all alternatives and changing depending on the decision. The costs that are relevant only to a given problem (distinguishing one alternative from another) are called relevant. These are the costs, the amount of which will depend on the decision made. Irrelevant the costs do not depend on the decision made. Accountant-analyst, presenting to the management the initial information for the selection optimal solution, prepares its reports so that they contain only relevant information.
Example 8
The Fresh Wind enterprise purchased basic materials in the amount of 500 thousand rubles, however, due to a change in technology, it turned out that these materials are of little use for production: the products made from them will be uncompetitive in the market. The Osenny Les partner enterprise, which has previously purchased products from this enterprise, is ready to buy a batch made of these materials for 800 thousand rubles. At the same time, the additional costs of the Fresh Wind enterprise for the processing of materials into the required products will amount to 600 thousand rubles. (piecework + variable overhead). Is it advisable to accept such an order?
Obviously, in this case, the Fresh Wind enterprise has two alternatives (Table 9).
Taking into account irrelevant expenses in the second case, the company "Fresh Wind" will receive a loss in the amount of 300 thousand rubles. (200 thousand rubles - 500 thousand rubles) in comparison with the loss from writing off materials in 500 thousand rubles.
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Thus, not all actual costs and revenues recorded in accounting statements, are significant (relevant) for the decision being made. Let's take another example.
Example 9
The accountant of the company "Fresh Wind" AV Petrov provided the management with information on revenue and costs for the II and III quarters (Table 10).
Table 10. Data on revenue and costs forIIandIIIquarters, thousand rubles |
||
Indicator |
IIquarter |
IIIquarter |
Revenues from sales: |
||
air conditioners |
||
fans |
||
Total costs |
||
Total profit |
Accountant-analyst Ivanov LK, specialist in management accounting, made calculations of costs in the context of each product (costing by product) and received the following data (Table 11).
Table 11. Calculations of costs in the context of each product (costing by product, thousand rubles) |
||
Indicator |
IIquarter |
IIIquarter |
Revenue from the sale of air conditioners |
||
Air conditioner manufacturing costs |
||
Profit from the sale of air conditioners |
||
Revenue from the sale of fans |
||
Fan production costs |
||
Profit (loss) from the sale of fans |
||
Total profit |
It can be seen from Ivanov's calculations that the enterprise receives all its profits only from the sale of air conditioners, while the sale of fans is unprofitable. Management now has a basis for making management decisions, such as discontinuing or increasing the price of fans, or taking measures to save costs associated with fan manufacturing. Note that all of these decisions will be made by management on a relevant cost basis as it will explore alternatives for the future.
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Irrecoverable costs - these are elapsed costs that cannot be changed by any management decisions. Usually they are not taken into account when making management decisions. For example, expenses incurred by the Fresh Wind company in the amount of 500 thousand rubles. for materials that she no longer needs (example 8) is an example of a sunk cost. This cost category includes, for example, residual value previously acquired property.
Note that irrelevant costs are not always irrecoverable. For example, when comparing two alternative production methods, you might find that the costs of basic materials are the same for both methods. Therefore, the costs of basic materials can be categorized as irrelevant when choosing between these options. But at the same time, the cost of materials will not be irrecoverable, since they will be incurred only in the future.
Imputed (imaginary) costs are present only in management accounting. They are added when making decisions in case of limited resources, but in reality they may not exist. They characterize the possibilities for the use of production resources that are either lost or sacrificed in favor of another alternative solution. If resources are unlimited, the imputed cost is zero.
Example 10
The Lesnaya Yagoda company now has the opportunity to obtain a contract for the production of apricot jam. It takes 100 hours to make it on the company's existing equipment. The equipment is operating at full capacity (1000 hours), producing raspberry jam, and the only way the new contract can be fulfilled is by reducing the output of raspberry jam, which means a loss of income in 200 thousand rubles The contract is also associated with variable costs of 1,000 thousand rubles.
If the company signs this contract, it will donate proceeds of 200 thousand rubles. from an unreleased share of raspberry jam. This portion is an opportunity cost and should be reflected as a portion of the cost to be considered when negotiating the terms of the contract. Thus, the price of the contract should be such as to at least cover additional costs of 1,000 thousand rubles. plus 200 thousand rubles. opportunity costs to ensure that the company does not, at the very least, worsen its position in the short term by accepting this contract.
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These are additional costs per unit of production. Thus, both categories of costs arise as a result of the manufacture of additional products: some - per unit, and others - for the entire output.
Planned are called the costs calculated for a certain volume of production. In accordance with the norms, standards, limits, estimates, they are included in the planned cost of production. This includes all of the production costs of the organization. Not planned costs are not included in the plan and are reflected only in the actual cost of production (losses from rejects, downtime, etc.).
The classifications of costs discussed above do not solve all the problems of controlling them. With information about the cost of production, it is impossible to determine exactly how costs are allocated between individual production areas (responsibility centers). This problem can be solved by establishing a relationship between costs and incomes with the actions of those responsible for spending resources.
This approach in management accounting is called taking into account the costs by centers of responsibility(segments of the enterprise, for the results of which its manager is responsible). In practice, it is implemented by dividing costs into the following groups:
adjustable and unregulated. Regulated costs are influenced by the responsibility center manager, unregulated costs are not influenced by management personnel. For example, the costs associated with the violation of technological discipline in the shop are under the responsibility of the head of the shop, but he cannot influence general operating expenses, since this O the prerogative of senior managers, for him these costs are unregulated;
- controlled and uncontrolled... Controlled costs are amenable to control by the subjects of management, and uncontrolled ones do not depend on the activities of management personnel. For example, an increase in gasoline prices will increase the company's costs, but the company's management cannot influence the change in the price of gasoline in any way;
- effective and ineffective... The result of effective costs is income from the sale of those types of products for the release of which these costs were incurred. Ineffective costs are non-productive expenditures that will not generate income, since the product will not be produced. In other words, ineffective costs are losses in production (from rejects, downtime, shortages, damage to values).
When making any management decision, it is necessary to evaluate alternative options for costs and profit.
Example 11
The Lesnaya Yagoda enterprise has the opportunity to lease the area of an empty workshop for storage (170 thousand rubles per month) or purchase and install a marmalade production line in the vacant workshop - in this case, you can count on receiving income in the amount of 370 thousand rubles per month. rub. taking into account the following costs:
- 30 thousand rubles. - costs associated with the maintenance of premises;
- 50 thousand rubles - the cost of amortization, maintenance and operation of the "marmalade" line;
- 70 thousand rubles - the cost of purchasing raw materials;
- 40 thousand rubles. - wages and social security contributions.
It is necessary to assess the profitability of both options in order to make a management decision.
Option 1. When the property is leased out, the company will receive a profit in the amount of: 170 thousand rubles. - 30 thousand rubles. = 140 thousand rubles.
Option 2. When organizing production, the enterprise will receive a profit in the amount of: 370 thousand rubles. - 30 thousand rubles. - 50 thousand rubles. - 70 thousand rubles. - 40 thousand rubles. = 180 thousand rubles.
From the traditional point of view, 140 and 180 thousand rubles are compared. And from the standpoint of opportunity costs, it is necessary to remember that by accepting the second option for implementation, we refuse the profit that the first option is capable of bringing to us. Thus, the profit obtained in the second option must be further reduced by the amount of the lost profit, which we “refused”:
180 thousand rubles - 140 thousand rubles. = 40 thousand rubles.
The option of accounting for opportunity costs allows you to show the actual profitability of the selected option of activity, because it is 40 thousand rubles. (and not 180 thousand rubles) - additional remuneration of the enterprise for all the troubles associated with organizing the production of marmalade.
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So we have considered general provisions concerning the classification of costs in management accounting. This will allow the management to make the right management decisions even in conditions of uncertainty. Therefore, the purpose of the cost classification process is to highlight that part of the costs that the manager can influence in order to increase his income and capitalize the value of his company. Everything that was said above is summarized in table for the convenience of practical use. 12.
Table 12. Classification of costs |
|
Cost management, inventory valuation and profit |
|
Inbox and expired |
Incoming costs- these are the funds, resources that have been acquired, are available and are expected to bring income in the future. In the balance sheet, they are reflected as assets. Elapsed costs- these are funds (resources) that were spent during the reporting period to generate income and have lost the ability to generate income in the future. Reflected by the Debit of account 90 "Sales" |
Direct and indirect |
Direct costs- direct material costs of production and direct costs of labor costs. They are accounted for by the Debit of account 20 "Main production", they can be attributed directly to a specific product on the basis of primary documents. Indirect costs cannot be directly attributed to any product. They are distributed between individual products according to the methodology chosen by the organization (in proportion to the basic wages of production workers, the number of machine-tool hours worked, hours worked, etc.). This technique should be reflected in the accounting policy of the enterprise. Reflected on account 25 "General production costs", account 26 "General business expenses" |
Basic and consignment notes |
Basic costs are directly related to the process of production of products, works, services (materials, wages and salaries of workers, wear of tools, etc.). The main costs are accounted for on the accounts for accounting for production costs: account 20 "Main production", account 23 "Auxiliary production". Overhead costs- costs of management and maintenance of the production process (general production and general business costs). Overhead costs are accounted for on accounts 25 "General production expenses", 26 "General business expenses" |
Production and non-production |
Production costs- these are the costs included in the cost of production. Overhead costs(periodic) Are costs that cannot be inventoried. The size of these costs does not depend on the volume of production, but on the length of the period. These costs include selling and administrative expenses. They are recorded on accounts 26 "General expenses" and 44 "Expenses for sale" |
Single element and complex |
Single element call costs that in a given organization cannot be decomposed into components: material costs (minus the cost returnable waste), labor costs, deductions for social needs, depreciation of fixed assets, and other costs. Complex costs consist of several economic elements. For example, shop floor (general production) costs include almost all elements |
Decision making, planning and forecasting |
|
Constants and Variables |
Fixed costs do not depend on the volume of production Variable costs increase or decrease in proportion to the volume of production (provision of services, turnover), that is, they depend on the business activity of the organization |
Relevant and irrelevant |
The costs that are relevant only to a given problem (distinguishing one alternative from another) are called relevant... These are the costs, the amount of which will depend on the decision made. Irrelevant expenses do not depend on the decision |
Irrevocable |
These are expired costs and cannot be changed by any management decisions. They are usually not taken into account when making management decisions. |
Imputed (imaginary) |
Present only in management accounting. They are added when making decisions in case of limited resources, but in reality they may not exist. They characterize the possibilities for the use of production resources that are either lost or sacrificed in favor of another alternative solution. If resources are unlimited, the imputed cost is zero. |
Incremental and limit |
Incremental (incremental) costs are additional and arise as a result of the manufacture and sale of an additional batch of products. Marginal (marginal) costs represent additional costs per unit of production |
Planned and not planned |
Planned expenses calculated for a certain volume of production. Not planned expenses are not included in the plan and are reflected only in the actual cost of production (losses from rejects, downtime, etc.) |
Control and regulation |
|
Adjustable and non-adjustable |
Adjustable costs are influenced by the manager of the responsibility center, on unregulated he cannot influence |
Controlled and uncontrolled |
Controlled costs amenable to control by the subjects of management, and uncontrolled do not depend on the activities of management personnel |
Effective and ineffective |
As a result cost effective receive income from the sale of those types of products for the release of which these costs were incurred. Ineffective costs- expenses of a non-productive nature, as a result of which income will not be received, since the product will not be produced |
We only mentioned responsibility centers because we focused on cost categories. At the same time, accounting for costs by centers of responsibility is necessary in management accounting to ensure that each cost center corresponds to the area of responsibility of specific individuals. The purpose of organizing accounting by responsibility centers is to accumulate data on costs and incomes for each responsibility center in such a way that deviations from planned indicators can be assigned to responsible person... In the next issues of the journal, we will take a closer look at cost accounting by responsibility centers, as well as analyze the accounts in management accounting.
For the adoption of optimal management and financial decisions you need to know your costs and first of all understand the information about production costs. Cost analysis helps to find out their effectiveness, establish whether they will not be excessive, check the quality indicators of work, correctly set prices, regulate and control costs, plan the level of profit and profitability of production.
For a long time, costs were identified and accounted for by the so-called boiler method. In a single accounting register during the entire reporting period, all funds spent on production were taken into account, regardless of the place of their consumption and their purpose. As a result, they came out to the total amount of expenses for the period without taking into account the assortment and structure of manufactured products. The “boiler” method did not reveal the possibilities of cost reduction; its main disadvantage was the impersonality of information. Such accounting did not allow the enterprise to obtain the necessary data to control production costs in terms of costs (main production, auxiliary production, general production, general business costs, etc.), places of their occurrence (workshops, departments, services), types of products (performed works, services provided). Unfortunately, this method is still used by many small domestic enterprises.
In 1887 the first edition of the theoretical work of the English economists J. M. Fels and E. Garke "Production accounts: principles and practice of their maintenance" was published. The authors have attempted to create a more mobile cost accounting system that increases the information content of cost data and contributes to greater control over their use. This system was based on the division of costs into Fixed (today these are fixed costs) and variable (conditionally variable). Scientists have found that the change in fixed costs does not directly depend on the volume of production, and variable costs increase or decrease in direct proportion to the increase or decrease in production. This led to the idea that it is possible to increase the volume of production with the consumption of fewer resources than previously thought, since the conditionally fixed costs increase unevenly.
American economist A.G. Church in 1901, in his work "Adequate Allocation of Production Costs," divided the nominally fixed (or overhead) costs associated with production into labor overheads and organizational costs. Since that time, there has been a discussion in scientific circles about the proportion in which conditionally fixed costs should be included in the prime cost. And only in 1936, when J. Harris put forward direct costing concept, the need for overhead allocation has disappeared. By the mid-60s, this method is gaining a strong position in accounting.
However, for the enterprise, it is becoming more and more urgent not so much the problem of accurate and complete determination of the cost price, but rather the prevention of unjustified costs that could have been avoided. The solution to this problem was the appearance at the beginning of the XX century. in the USA and then in Europe systems "standard-cost" comparing the actual costs with the normalized ones. Cost accounting began to develop in such a way that the administration not only determined costs, but also more fully controlled the use of resources, preventing the occurrence of unjustified costs. This led to the formation of J.A. Higgis responsibility center concepts, in accordance with which the costs were not only considered within the framework of the entire enterprise, but were also differentiated by centers of responsibility with the appointment of responsible persons.
Subsequently, the “standard cost” system and accounting by responsibility centers evolved into the “System in time” (SIT) method (exactly in time), the authors of which were R.D. McIlhattan, R.A. Howell and SR. Sauces. The analysis is based on the percentage of deviations from the schedule and standards (norms).
Thus, cost accounting focused not on the final product of production, but directly on the production process.
The costs of living and materialized labor for the production and sale of products (works, services) are called production costs. In domestic practice, to characterize all production costs for a certain period, the term is used "Production costs".
Often in economic literature the term "costs" is identified with the concept of "costs". However, a closer examination of these categories reveals a significant difference between them.
In PBU 10/99 “Expenses of an organization” and PBU 9/99 “Income of an organization”, which came into force on January 1, 2000, for the first time the concepts of “income” and “expenses” were defined for accounting purposes. At the same time, expenses mean "a decrease in economic benefits as a result of the disposal of assets (cash, other property) and (or) the emergence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by the decision of participants (property owners)." Expenses include such items as the cost of manufacturing products (works, services), remuneration of management personnel, depreciation, as well as losses (losses from natural disasters, sales of fixed assets, changes exchange rates and etc.). Drawing up form No. 2 "Profit and loss statement" for external users of financial statements assumes a detailed and symmetrical reflection of information on the income and expenses of the organization.
The subject of management accounting, among other things, is the current costs of the organization. In the language of financial accounting, these are expenses for common types activities.
Clause 9 PBU 10/99 essentially sets out mechanism for the transition from the organization's expenses to the unit cost(works, services). It has been determined that for the purposes of the organization's formation of a financial result from ordinary activities, the cost of goods produced (works, services) is determined, which is formed on the basis of expenses for ordinary activities:
Recognized in the reporting year and in previous reporting periods;
Carry-over expenses related to the receipt of income in subsequent reporting periods.
The terms “income” and “expenses” of the organization, defined by the above provisions, do not contradict the International Financial Reporting Standards, according to which expenses include losses and expenses arising in the course of the main activity of the enterprise. They usually take the form of an asset outflow or decrease. Expenses are recognized in the income statement based on the direct link between the costs incurred and the income from certain items of income. This approach called the matching of expenses and income. Thus, in the accounting statements, all income should be correlated with the costs of obtaining them, called expenses (the principle of correlating income). From the point of view of Russian accounting techniques, this is that costs should be accumulated on accounts 10 "Materials", 02 "Depreciation", 70 "Payments", then on accounts 20 "Main production" and 43 "Finished goods" and not debited to sales accounts until the products, goods, services with which they are associated are sold. Only at the moment of sale does the enterprise recognize its income and the associated part of the costs - expenses. In accounting, income and expenses are reflected, respectively, on credit and debit of accounts 90, 91. With regard to account 90 "Sales", the expenses of the enterprise essentially characterize the cost of goods sold (work, services).
The concept of "costs" from among those considered is the most generalizing indicator. Cost is a monetary measurement of the amount of resources used for a purpose. Then the costs can be defined as the costs incurred by the organization at the time of the acquisition of any material values or services. The emergence of costs attributable to costs is accompanied by a decrease in the economic resources of the organization or an increase accounts payable... Costs can be charged to either assets or expenses of the organization. We will adhere to these approaches in the further presentation of the material.
Of great importance for the correct organization of cost accounting is: their scientifically based classification. Production costs are grouped according to their place of origin, cost objects and cost types.
By place of origin costs are grouped by production, workshops, sites and other structural divisions of the enterprise. Such a grouping of costs is necessary to organize accounting by responsibility centers and determine the production cost of products (works, services).
Cost bearers name the types of products (works, services) of the enterprise intended for sale. This grouping is necessary to determine the cost of a unit of production (work, services).
By type, costs are grouped by economically homogeneous elements and by costing items.
In management accounting, the classification of costs is very diverse and depends on what kind of management problem needs to be solved. The main tasks of management accounting include:
Calculation of the cost of manufactured products and determination of the amount of profit received;
Management decision making and planning;
Control and regulation of production activities of responsibility centers.
The solution to each of the named tasks corresponds to its own classification of costs (Table 2.1). So, to calculate the cost of manufactured products and determine the amount of profit received, costs are classified into:
Incoming and expired;
Direct and indirect;
Basic and consignment notes;
Included in the cost of production (production) and non-production (periodic, or period costs);
Single-element and complex;
Current and one-off.
For decision making and planning, a distinction is made between:
Fixed, variable, conditionally fixed (conditionally variable) costs;
Costs taken into account and not taken into account in estimates;
Irrecoverable costs;
Imputed costs;
Marginal and incremental costs;
Planned and unplanned.
Finally, for the implementation of control and regulation functions in management accounting, regulated and unregulated costs are distinguished. Particular attention is paid here to adjusting costs taking into account the actually achieved volume of production, i.e. drawing up flexible estimates.
Table 2.1
Classification of costs depending on the purpose of management accounting
Untitled document
Cost classification |
|
Calculation of the cost of production |
Inbox and expired |
Decision-making |
Constants (conditionally constant) and variables |
Control and regulation |
Adjustable |
The following cost classification is given to determine the cost price, estimate the cost of inventories and the received profit.
Incoming and expired costs (costs and expenses). Incoming costs are those funds, resources that have been purchased, are available and are expected to generate revenues in the future. In the balance sheet, they are reflected as assets.
If these funds (resources) during the reporting period were spent to generate income and have lost the ability to generate income in the future, then they become expired. In accounting, the elapsed costs are reflected in the debit of account 90 "Sales".
The correct division of costs into incoming and outgoing costs is of particular importance for assessing profit and loss.
As an example of the input costs of a trade enterprise, one item of the balance sheet asset can be cited - goods. If these goods are not sold and are stored in the warehouse, then they are recorded in the balance sheet as incoming. If these goods are sold, then the purchase costs incurred in connection with them should be attributed to expired. In the balance sheet of an industrial enterprise, the input costs in terms of production stocks are represented by three items, each of which is a stage in the production process: stocks of materials (in the warehouse and pending processing), stocks in work in progress (semi-finished products of our own production) and stocks of finished products.
So, incoming costs are synonymous with the term "costs", and elapsed - are identical to the concept of "costs"... Expenses are part of the costs incurred by the enterprise in connection with the generation of income.
Direct and indirect costs. Direct costs include direct material costs and direct labor costs. They are accounted for in the debit of account 20 "Main production", and they can be attributed directly to a specific product.
Indirect costs cannot be directly attributed to any product. They are distributed between individual products according to the methodology chosen by the enterprise (in proportion to the basic wages of production workers, the number of machine tool hours worked, hours worked, etc.). This technique is described in the accounting policy of the enterprise. Let us dwell in more detail on the essence of direct and indirect costs.
Direct material costs. Every manufactured item is made up of some material. Basic materials are materials that become part of the finished product; their cost can be directly and economically attributed to a specific product at no special cost.
In some cases, it is economically unprofitable to take into account the consumption of materials for each type of product. Examples of such costs are nails in furniture, bolts in cars, rivets in airplanes, and the like. Such materials are considered ancillary, and the cost of them - indirect overhead costs, which are taken into account as a whole for reporting period, and then by special methods are distributed between individual types of products.
Direct labor costs includes all labor costs that can be directly and economically attributed to a particular type of finished product. Labor costs for work that cannot be directly and economically attributed to a certain type of finished product are called indirect labor costs. These costs include the remuneration of workers such as mechanics, supervisors and other support personnel. Like the cost of ancillary materials, indirect labor costs are classified as indirect general production costs.
The amount of direct costs per unit of production practically does not depend on the volume of production, and it can be reduced by increasing production efficiency, labor productivity, and introducing new resource and energy saving technologies.
Indirect costs. This includes all costs that cannot be attributed to the first and second groups. Indirect costs are a set of costs associated with production that cannot (or are economically impractical) attributable directly to specific types of products. In the domestic economic literature, they are also called overhead costs.
Indirect costs are divided into two groups (Figure 2.1):
overhead (production) costs- These are the general costs of organizing, maintaining and managing production. In accounting, information about them is accumulated on account 25 "General production costs";
general business (non-production) expenses are carried out for the purposes of production management. They are not directly related to the production activities of the organization and are recorded on the balance sheet account 26 "General expenses".
A distinctive feature of general business expenses is that they remain unchanged within the scale base. They can be changed by management decisions, and the degree of their coverage - by sales.
Under a large-scale base in management accounting, a certain interval of production (sales) is understood, in which costs behave in a certain way, have any clearly expressed tendency. For example, an enterprise has a machine park of 10 units. equipment. At the same time, 1 million units are produced annually. products. Annual amount depreciation for these fixed assets is 500 thousand rubles. The management of the company decided to double the production volume, for which it put into operation 10 additional machines. The scale base within which depreciation charges have remained constant until now (from 0 to 1 million items) has changed. Now this is a different interval in the volume of production - from 1 to 2 million pieces. products. Depreciation deductions, which are inherently fixed costs, will reach a qualitatively different level and will again be fixed at 1 million rubles. until the next change in the scale base. The described dependence is illustrated in Fig. 2.2.
In some industries that produce homogeneous products, for example, in the energy, coal, oil-extracting industries, all costs will be direct. In processing enterprises (in mechanical engineering, light, food industry, etc.), indirect costs are very significant. Thus, the division of costs into direct and indirect depends on the technological features of production.
Basic and overhead costs. By their purpose, the costs are divided into basic and enterprise management costs. The latter are called overhead costs.
TO basic expenses includes all types of resources (objects of labor in the form of raw materials, basic materials, purchased semi-finished products; depreciation of basic production assets; wages of basic production workers with charges for it, etc.), the consumption of which is associated with the production of goods (provision of services). In any enterprise, they constitute the most important part of the cost.
Overheads are caused by management functions that differ in nature, purpose and role from production functions. These costs, as a rule, are associated with the organization of the enterprise, its management. In accordance with the method of allocating costs to the media (costing object), the overhead is indirect.
Production and non-production (recurring costs, or period costs).In accordance with International Financial Reporting Standards to assess stocks of manufactured products only production costs should be included in the cost of production... Therefore, in management accounting, costs are classified into:
Included in the cost of production (production);
Non-production (reporting period costs, or recurring costs).
Costs included in the cost of production (production), are materialized costs and can therefore be inventoried. They consist of three elements:
Direct material costs;
Direct labor costs;
General production costs.
Production costs are embodied in stocks of materials, in volumes of work in progress and balances of finished products (goods) in the warehouse of the enterprise. In management accounting, they are often called stock-intensive, since they are distributed between the current costs involved in the calculation of profit and stocks. The costs of their formation are considered incoming, are the assets of the firm that will bring benefits in future reporting periods.
Overhead costs, or costs of the reporting period (recurring costs), are costs that cannot be inventoried. In management accounting, these costs are sometimes called the costs of a certain period, since their size does not depend on the volume of production, but on the length of the period. These costs are usually related to the services received during the reporting period. In accordance with International Financial Reporting Standards, they are not used in the calculation of the cost of finished goods (work in progress), and therefore, to assess the production inventories of the enterprise. Therefore, they are sometimes called non-stocking. Recurring costs are represented by costs non-productive nature not directly related to the production process. They consist of selling and administrative expenses. The former imply the costs associated with the sale and supply of products, the latter - the costs of enterprise management. These costs are accounted for on balance sheet accounts 26 "General business expenses" and 44 "Sales costs", respectively. Recurring costs are always attributed to the month, quarter, year during which they were incurred. They do not go through the inventory stage, but immediately affect the calculation of profit. In accordance with International Accounting Standards in the income statement, they are deducted from revenue as expenses that are not taken into account in the calculation and measurement of inventories.
Comparing industrial and commercial accounting, you can identify the differences between costs such as wages, depreciation, insurance. In industry, many of these costs are related to production activities, and therefore general production costs become costs only when the product (work, service) is sold. At trade enterprises, these costs are the costs of the period.
Single-element and complex costs.Single element call costs that at a given enterprise cannot be decomposed into terms. The classification by economic elements is based on this principle.
Complex costs are composed of several economic elements. The most striking example is the shop floor (general production) costs, which include almost all elements.
Costs need to be disaggregated depending on the economic feasibility and the desire of the management. When the share of one or another cost element is relatively small, it makes no sense to highlight it. For example, at enterprises with a high degree of automation, wages with deductions in the cost structure are less than 5%. In such enterprises, as a rule, direct wages are not allocated, but they are combined with the costs of maintenance and production management in a separate item called "added costs".
As noted above, one of the tasks of management accounting is the preparation of information for internal users, necessary for them to make management decisions, and the timely delivery of this information to the management of the enterprise.
Because management decisions are generally forward-looking, management needs detailed information about expected costs and revenues. In this regard, in management accounting, when performing calculations related to making a decision, the following types of costs are distinguished:
Variables, constant, conditionally constant - depending on the response to changes in production (sales) volumes;
Expected costs, taken into account and not taken into account in the calculations when making decisions;
Irrecoverable costs (costs of the past period);
Imputed costs (or lost profits of the enterprise);
Planned and unplanned costs.
In addition, in management accounting distinguish between marginal and incremental costs and revenues.
Variable, fixed, conditionally fixed costs.Variable costs increase or decrease in proportion to the volume of production (provision of services, turnover), i.e. depend on the business activity of the organization. Both production and non-production costs can be of a variable nature. Examples production variable costs are direct material costs, direct labor costs, costs of auxiliary materials and purchased semi-finished products.
Variable costs characterize the cost of the product itself, all the rest (fixed costs) - the cost of the enterprise itself. The market is not interested in the value of the enterprise; it is interested in the value of the product.
The total variable costs have a linear dependence on the indicator of the business activity of the enterprise, and the variable costs per unit of production are constant.
The dynamics of variable costs is shown in Fig. 2.3, where variable costs per unit of output (specific) conditionally remain at the level of 20 rubles.
TO non-production variable costs You can include the costs of packaging finished products for shipment to the consumer, transportation costs not reimbursed by the buyer, the commission to the intermediary for the sale of goods, which directly depends on the volume of sale.
Production costs, which remain practically unchanged during the reporting period, do not depend on the business activity of the enterprise and are called fixed production costs... Even when the volumes of production (sales) change, they do not change. Examples of fixed production costs are the cost of renting production space, depreciation of fixed assets for production purposes.
The dynamics of total fixed costs (conditionally at the level of 100 thousand rubles) and unit fixed costs are illustrated in Fig. 2.4.
To describe the behavior of variable costs in management accounting, a special indicator is used - cost responsiveness(the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for2.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:
where Y is the growth rate of costs,%;
X is the growth rate of the firm's business activity,%.
As noted above, costs are considered constant if they do not respond to changes in production volumes. For example, the cost of renting a car will not change if production is increased by 30%. In this case
allocation "> proportional costs. They increase at the same rate as the business activity of the enterprise. For example, if the volume of production increases by 30%, proportional costs will increase in the same proportion. Then
= 1 characterizes costs as proportional. Their behavior is illustrated in Fig. 2.5.
Another type of variable costs are degressive costs... The rate of their growth lags behind the rate of growth of business activity of the firm. Suppose that with an increase in production by 30%, costs increased by only 15%. Then
the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for1.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:< 1, свидетельствует о том, что затраты являются дегрессивными.
The costs that grow faster than the business activity of the enterprise are called progressive costs... As an example, the following ratio can be cited: an increase in production by 30% is accompanied by an increase in costs by 60%. Then
the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for1.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:> 1 costs are progressive.
Graphs of the behavior of degressive and progressive costs - total and per unit of production (sales) - are shown in Fig. 2.6.
The economic essence of fixed and variable costs can be illustrated by the example of a commercial bank.
A bank is a specific legal entity that does not carry out production activities. It is the main structural unit of monetary circulation. The product of banking activities are services related to the organization of payments and settlements, maintaining accounts of legal entities and individuals, storing funds, lending and performing other banking operations.
Therefore, the bank's expenses are divided into the costs associated with the functions performed in the sphere of monetary circulation (they are sometimes called interest expenses), and the costs associated with ensuring the functioning of the bank (non-interest expenses) (Table 2.2).
Table 2.2
Commercial bank expenses
Untitled document
Consumption type |
Amount, thousand rubles |
Specific gravity,% |
Interest expense |
||
|
||
Non-interest expenses |
||
|
||
bank organization costs |
||
other expenses: |
||
contributions to funds and reserves |
||
commission paid |
||
rent |
||
TOTAL bank expenses |
In a commercial bank, all interest expenses can be categorized as variables, since they are in direct proportion to the volume of business activity of the bank, measured, for example, by the amount of customer account balances.
Non-interest expenses can be attributed to conditionally permanent and fixed costs. For example, the items "rent" and "security costs" are fixed costs that increase stepwise, since payments are made under contracts concluded for a quarter, i.e. the quarter can be considered a large-scale database for expenditure data (Table 2.3).
Table 2.3
Classification of bank expenses
Untitled document
Consumption type |
Amount, thousand rubles |
Variable costs |
|
|
|
interest paid for attracted loans |
|
interest paid to legal entities on borrowed funds |
|
interest paid to individuals on deposits |
|
expenses on transactions with securities |
|
expenses on operations with foreign currency and other currency values |
|
Fixed costs |
|
|
|
rent | |
security costs in permitted cases |
|
Conditional fixed costs |
|
|
|
management costs |
|
bank organization costs |
|
contributions to funds and reserves |
|
commission paid |
|
depreciation charges for fixed assets |
|
postage, telegraph, telephone costs |
|
reporting costs |
|
audit costs |
|
TOTAL bank expenses |
The rest of non-interest expenses are conditionally fixed, since they depend to one degree or another on the volume of the bank's business activity.
The dependence of the bank's total expenses on the payment of interest on customer accounts on their balance is shown in Fig. 2.7. In a stable economy and constant bank interest, these costs turn out to be proportional.
Dependence of the bank's expenses on the payment of interest on customer accounts per 1 ruble. residues are shown in Fig. 2.8.
With a decrease in inflation and, as a consequence, in interest rates on bank deposits, the cost of paying interest is degressive (Fig. 2.9).
With galloping inflation and an increase in interest rates on bank deposits, interest payments have a progressive trend (Fig. 2.10).
Fixed costs- these are the costs of renting premises, security, depreciation deductions, etc. In practice, the bank's management makes decisions in advance about what should be the fixed costs and what level of business activity is to be achieved.
Fixed costs per unit of production are reduced in steps (Figure 2.11). The total fixed costs are constant and do not depend on the volume of business activity, but can change under the influence of other factors (Fig. 2.12). For example, if prices rise, then the total fixed costs also rise.
In real life, it is extremely rare to find costs that are inherently exclusively constant or variable. Economic phenomena and their associated costs in terms of content are much more complex, and therefore, in most cases, the costs are conditional variables(or conditionally permanent). In this case, a change in the organization's business activity is also accompanied by a change in costs, but, unlike variable costs, the dependence is not direct. Nominally variable (nominally fixed) costs contain both variable and fixed components. An example is the payment for using the telephone, which consists of a fixed subscription fee (fixed part) and long-distance calls (variable term).
Therefore, any costs in general form can be represented by the formula
Y = a + bX,
where Y - total costs, rubles;
a - their constant part, independent of the production volume of rubles;
b - variable costs per unit of output (cost response ratio), rubles;
X is an indicator characterizing the business activity of an organization (volume of production, services rendered, turnover, etc.) in natural units.
If in this formula the constant part of the costs is absent, i.e. a = 0, then these are variable costs. If the cost response ratio (b) is zero, then the analyzed costs are constant.
For management purposes - assessing the efficiency of the enterprise, analyzing its break-even, flexible financial planning, making short-term management decisions and solving other issues (see Chapter 4 and) - it is necessary to describe the cost behavior with the above formula, i.e. divide them into constant and variable parts.
In the theory and practice of management accounting, there are a number of methods to solve this problem. In particular, these are correlation methods, least squares and the method of high and low points, which in practice turns out to be the simplest.
Example 1. According to the center of responsibility A, there are the following data (Table 2.4) on the volume of production and the corresponding costs for the maintenance and operation of equipment (RSEO) during the year:
From the above data, it can be seen that the highest production output was achieved in October (3000 pcs.) And costs in the amount of 280 thousand rubles corresponded to it. In July, on the contrary, the minimum number of products was produced (1800 pieces), for which 170 thousand rubles were spent. We find deviations in production volumes and in costs at the maximum and minimum points:
the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for8.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:= 280,000 - 170,000 = 110,000 rubles.
Table 2.4
Untitled document
Production output, pcs. (X) |
RSEO, thousand rubles (Z) |
|
July |
||
September |
||
October |
||
Then the rate (St) of variable costs per unit of production (or the cost response coefficient) will be determined by the formula
the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for10.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:= 91.667 x 3000 = 275,000 rubles. - cumulative variable costs at the maximum point (in October). Similarly St x example "> Y = 5000 + 91.667 X,
where Y is the total cost of maintaining and operating the equipment, rubles;
X - production volume in kind.
The behavior of these costs is shown in Fig. 2.13.
As you can see from the above calculations, the high and low point method is quite simple to use. Its purpose is to predict the behavior of costs when the business activity of the enterprise changes. As with any forecast, there is some margin of error here. This is due to the fact that the value of the two extreme indicators is not always representative. Therefore, random, uncharacteristic data should be excluded from the calculation.
The previous example analyzed the behavior of one line item of the Responsibility Center. The next example covers the complex of costs of the center of responsibility and is more close to reality.
Example 2. A publishing house, along with other types of printed matter, produces advertising brochures. Table 2.5 provides information on the costs attributed to these costs during 9 months of 2003.
It is known that the inflation index for the first half of the year was 3%, for the period from July to September - 2%. This affected the cost of basic materials purchased by the publisher, and as a result - on the payment for printing work. In addition, in April and July 2003, the salaries of all personnel were indexed by 10%.
Table 2.5
Publisher's costs associated with the production of advertising brochures
Untitled document
Indicators |
September |
||||||||
Circulation, copies |
|||||||||
In order to identify the dependence of the costs of a publishing house on its business activity, it is necessary:
Correct the initial data and bring them to a form comparable to the conditions as of 01.10.2003;
Using the method of high and low points, describe the behavior of the costs associated with the production of the booklet by the formula
Y = a + bX.
1. To make the data comparable for the entire analyzed period, it is necessary to make two adjustments: recalculate the cost of basic materials and printing works, as well as the amount of accrued wages.
The costs of materials and printing works incurred in August, in September prices, will be:
7600 x 1.02 = 7752 rubles.
By the end of September, the indicator for July was two months old. The cost of materials and printing works reduced to September prices will be:
7800 x 1.02 x 1.02 = 8115 rubles.
From January to June, the inflation rate was 3%. Therefore, the June cost of materials and services recalculated to the September prices is:
7800 x 1.03 x 1.02 x 1.02 = 8359 rubles.
Similar calculations were performed for the following months:
May - 7450 formula "src =" http://hi-edu.ru/e-books/xbook613/files/for13.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:= RUB 8413;
March - 7350 the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for15.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:= 8805 rubles;
january - 7000 selection ">
Table 2.6
Adjusted publishing costs associated with advertising brochures
Untitled document
Indicators |
September |
||||||||
Circulation, copies |
|||||||||
Cost of basic materials and printing services, rub. |
|||||||||
Salaries of key employees (journalists, editors, proofreaders, designers), rub. |
|||||||||
Executive, postage, personnel training costs, rub. |
|||||||||
Total expenses |
The table shows that the growth of business activity is accompanied by an increase in the total amount of expenses. There are no periods with indicators that do not fall under this dependence. Therefore, all information for subsequent calculations can be used as initial information.
2. The largest circulation of booklets was published by the publishing house in February (3,000 copies); expenses in the amount of 11,525 rubles correspond to it. This is the highest point. The lowest point falls on September (1,800 copies), the total cost of September is 10,210 rubles.
We find deviations in production volumes and in costs at the highest and lowest points:
the formula "src =" http://hi-edu.ru/e-books/xbook613/files/for18.gif "border =" 0 "align =" absmiddle "alt =" (! LANG:= 11 525 - 10 210 = 1315 rubles.
The variable cost rate will be:
example "> Y = 8237.6 + 1.0958 X,
where Y is the publishing house's expenses, rubles;
X - circulation, copies
Costs taken into account and not taken into account in estimates. The process of making a managerial decision involves comparing several alternative options with each other in order to choose the best one. The indicators compared in this case can be divided into two groups: the first remain unchanged for all alternatives, the second vary depending on the decision made. When a large number of alternatives are considered that differ from each other in many respects, the decision-making process becomes more complicated. Therefore, it is advisable to compare not all indicators with each other, but only indicators of the second group, i.e. those that change from variant to variant. These costs distinguishing one alternative from another, often in management accounting called relevant... They are taken into account when making decisions. The indicators of the first group, on the contrary, are not taken into account in the estimates. The accountant-analyst, presenting the management with the initial information for choosing the optimal solution, thus prepares his reports so that they contain only relevant information.
Example 3. Enterprise A, selling products on the foreign market, purchased basic materials for the amount of 500 rubles. Subsequently, due to a change in technology, it turned out that these materials are of little use for their own production. The products made from them will be uncompetitive in the external market.
However, the Russian partner is ready to buy products made from these materials from this enterprise for 800 rubles. In this case, the additional costs of enterprise A for the manufacture of products will amount to 600 rubles. Is it advisable to accept such an order?
In this case, two alternatives are compared with each other: do not accept or accept the order.
Elapsed expenses for the purchase of materials in the amount of 500 rubles. have already taken place and do not depend on which option is chosen. They do not influence the choice of a decision, are not relevant and therefore may not be taken into account when making a decision. Let's compare the alternatives in terms of relevant indicators (Table 2.7).
Table 2.7
Untitled document
It can be seen that by choosing alternative II, enterprise A will reduce its loss from the purchase of materials it does not need by 200 rubles, reducing it from 500 to 300 rubles.
Irrecoverable costs. These are elapsed costs that no alternative option is able to correct. In other words, these previously incurred costs cannot be changed by any management decisions. From the previous example, it can be seen that 500 rubles. - irrecoverable costs. Irrecoverable costs are not considered when making decisions.
However, costs that are not always neglected in the estimates are irrecoverable.
Imputed (imaginary) costs. This category is present only in management accounting. A financial accountant cannot afford to “imagine” any costs, since he strictly follows the principle of their documentary validity.
In management accounting, in order to make a decision, it is sometimes necessary to accrue or attribute costs that may actually not take place in the future. Such costs are called imputed costs. In essence, this is the lost profit of the enterprise. This is an opportunity that is lost or sacrificed for the sake of choosing an alternative management solution.
Example 4. The oven of a bakery operates at full capacity in three shifts and produces sliced loaves for 10 thousand rubles per week. The wholesale buyer offers the bakery a new weekly order for baking muffins, which will entail additional variable costs in the amount of 3 thousand rubles. What should be the minimum contract price?
By accepting the order, the bakery will give up the income of 10 thousand rubles previously received from baking loaves, i.e. in fact will incur losses of 10 thousand rubles. This amount must be taken into account by the company when discussing the terms of the contract. The contract price cannot fall below 13 thousand rubles. (10 + 3). At the same time, 10 thousand rubles. - imputed (imaginary) costs, or lost profits of the enterprise.
It should be borne in mind that this category of costs is applicable only in the case of limited resources, in the example given - with full utilization of production capacities. If the baking oven was underused and running with downtime, there would be no imputed cost.
Incremental and marginal costs.Incremental costs are additional and arise as a result of the manufacture or sale of an additional batch of products. Incremental costs may or may not include fixed costs. If fixed costs change as a result of the decision, then their increment is considered as incremental costs. If the fixed costs do not change as a result of the decision, then the incremental costs will be zero. A similar approach is applied to management accounting and to income.
Example 5. The trading enterprise has the indicators presented in table. 2.8.
Table 2.8
Untitled document
Indicators |
The values |
Sales proceeds (turnover), thousand rubles: |
|
|
|
|
|
Purchase price of a unit of goods, thousand rubles |
|
Circulation costs, thousand rubles: |
|
|
|
Rent for retail premises, thousand rubles |
The development of a new sales market is expected. The additional sales volume should be 200 pieces, the sales and purchase prices will not change. In this case, it is provided to increase by:
20% - rent for new retail premises;
10% - travel expenses.
The calculation of incremental income and expenses is presented in table. 2.9 (the purchase price of the goods and staff salary costs are absent in the calculations, being irrelevant indicators.
Table 2.9
Untitled document
Cost items (income) |
Current |
The projected |
Incremental |
Sales revenue (income) |
|||
Costs - total |
|||
including: |
|||
|
|||
|
Thus, the creation of a new sales market will lead to incremental expenses in the amount of 72 thousand rubles. The incremental income will amount to 200 thousand rubles.
If the sales revenue grows faster than the cost of developing the market, it means that the company has taken possession of a certain part of it, if more slowly, the company has lost its competitiveness and an analysis of the reasons for this is required.
Marginal cost and revenues represent additional costs and revenues per unit of production (goods). In the above example, the turnover should increase by 200 units, therefore, the marginal costs will be: 72,000: 200 = 360 rubles, and marginal income- 200,000: 200 = 1,000 rubles.
Planned and unplanned costs. Planned - these are costs calculated for a certain volume of production. In accordance with the norms, standards, limits and estimates, they are included in the planned cost of production. These costs will be discussed in chap. 3.
Unplanned - costs that are not included in the plan and are reflected only in the actual cost of production. When using the method of accounting for actual costs and calculating the actual cost, the accountant-analyst deals with unplanned costs.
The classifications of costs discussed above do not solve all the problems of controlling them. As a rule, products in the process of their manufacture go through a number of successive stages in various divisions of the enterprise. With information about the cost of production, it is impossible to determine exactly how costs are allocated between individual production areas (responsibility centers). This problem can be solved by establishing a relationship between costs and incomes with the actions of those responsible for spending resources. This approach in management accounting is called taking into account the costs by centers of responsibility, it can be implemented in practice by dividing costs into unregulated and unregulated (or controlled and uncontrolled).
Adjustable costs are subject to the influence of the manager of the center of responsibility, he cannot influence the unregulated ones. A manager's performance is assessed for its ability to manage adjustable costs.
For example, a production shop has overrun materials. Are these costs adjustable for the shop manager? The answer is ambiguous. If the overspending is associated with a violation of labor or technological discipline in the shop, then these costs will be controllable. If the reason lies in the low quality of the materials supplied to the shop, then these unproductive costs are considered as not regulated by the shop manager, and the head of the procurement department will be called on the carpet.
Under organization of accounting of production costs it is understood, firstly, the system of accounting accounts used by the enterprise and, secondly, the approaches applied by the enterprise to grouping its costs. The latter depends on what is the object of cost accounting.
The organization of accounting for production costs is influenced by a number of factors: the type of activity of the enterprise, its size, organizational structure of management, legal form, etc. Taking into account these circumstances and accounting policies for the next year, the company determines which synthetic accounts of the first and second order should be included in the working chart of accounts and which analytical accounts must be opened for these accounts.
From a technical point of view, management accounting can be viewed as analytical cost accounting. How many accounts does an enterprise need to organize this accounting? Suppose that an enterprise produces 10 types of products from 100 types of various materials and at the same time there are 5 centers of responsibility. In order for management accounting information to answer three questions: 1) what materials were used in production? 2) how many materials were used to manufacture this or that product? 3) in which center of responsibility were the materials consumed? - you must have at least 115 accounts (10 + 100 + 5). The level of detail in the working chart of accounts depends on the management's needs for a particular information.
The Chart of Accounts provides accounts for accounting for production costs. The current accounting plan does not provide for a special section for management accounting accounts, and they are found in essentially all of its parts. Today, the following are intended for management accounting:
Non-current assets accounting accounts - 01, 02, 04, 05;
Inventory accounts - 10, 15, 16, 20, 21, 23, 25, 26, 28, 29;
Finished goods and goods accounts - 41, 42, 43, 44, 45.
Account 20 "Main production" is intended to summarize information about the costs of the main production. The debit of the account reflects the direct costs associated with the release of products. Direct costs are written off to account 20 from the credit of the inventory accounts. This account is written off the costs from accounts 23 and 28, as well as indirect costs collected on accounts 25 and 26. Credit of account 20 reflects the amount of the actual cost of production completed. These amounts can be debited from account 20 to accounts 43, 90, 40. The balance at the end of the month on account 20 indicates the value of work in progress.
Under work in progress is understood as products of partial readiness, i.e. not passed all stages of processing. Work in progress includes materials and semi-finished products that have entered production, as well as finished products that have not passed through the quality control department. Work in progress is allowed to be valued at actual cost, at planned (normative), at direct costs. In mass and serial production, it is allowed to evaluate work-in-progress only in terms of the cost of raw materials and materials. In particular, this applies to the textile industry. The cost of work-in-progress remains is calculated according to inventory data or according to operational accounting data. Analytical accounting is carried out by type of costs and types of products, as well as by divisions of the enterprise.
Account 21 "Semi-finished products of own production" are used by enterprises that take into account the costs of the semi-finished product method. In terms of its content, it is close to inventory accounts. The debit of the account generates information about the cost of self-produced semi-finished products, and on a loan - about the cost of self-produced semi-finished products consumed for one purpose or another. This account is discussed in more detail in Ch. 3.4.2.
Account 23 "Auxiliary production" includes in their working accounting plan those enterprises where auxiliary (auxiliary) production is allocated in independent units(transport, repair shop, boiler room, etc.). Analytical accounting is carried out by type of production.
Account 25 "General production costs" is kept by enterprises with a shop-floor management structure, which need to receive information about general production costs in the shops of the main and auxiliary production (on the costs of lighting, heating, on the maintenance and operation of machinery and equipment, on the wages of production personnel in shops, employed service production, etc.). If the structure of the enterprise is not built on a shop floor, and general production costs are planned as a whole for the enterprise, then accounting on account 25 is also carried out as a whole for the enterprise without differentiation by production divisions (shops, sections, redistributions) of the enterprise. Often in such cases, the accounting of general production costs is carried out as part of general business expenses on a separate subaccount of account 26.
Account 26 "General business expenses" is intended to summarize information about management and business costs not directly related to the production process. Here information is accumulated on the costs of maintaining general economic personnel not related to the production process, on the accumulated depreciation deductions for fixed assets for administrative and general economic purposes, etc. The expenses recorded on account 26 are written off to the debit of accounts 20 and 23 or 90 (in accordance with the selected accounting policies enterprises). Analytical accounting for account 26 is maintained for each item of the corresponding estimates, the center of responsibility and the place of origin of costs.
Account 28 "Defects in production" is used to summarize information on losses from defects in production. Analytical accounting is carried out for individual shops, types of products, items of expenditure, reasons and perpetrators of marriage.
Account 29 "Service industries and farms" is used by enterprises on the balance sheet of which there are objects of the socio-cultural sphere: dispensaries, preschool institutions, canteens, boarding houses, etc. As a rule, these are large industrial enterprises.
The costs of maintaining service industries and farms are accounted for in the debit of account 29. Before the transition of industrial enterprises to market conditions management, this account traditionally had a debit balance, indicating an excess of expenses over the income of service industries and farms. The loss was written off to the debit of account 81 "Use of profit" or to the debit of account 88 "Retained earnings (uncovered loss)".
In conditions market relations more and more often there are cases of rendering services by service farms not so much to the personnel of their enterprise as to outside visitors. So, the medical unit of the former defense enterprise, which previously treated only its employees, today, using its own diagnostic equipment, provides paid medical services to the population. The plant itself is idle, its capacities are not loaded. Under these conditions, in order to reflect the results of the activity of the medical unit, it is obviously more expedient to use account 90 "Sales" in accounting management instead of account 29 "Serving industries and facilities".
Account 40 "Release of products (works, services)" is used in enterprises with a standard cost accounting method. The debit of the account reflects the actual, and the credit - the standard cost. By comparing the debit and credit turnovers, the deviation of the actual cost from the standard is determined, which is subsequently reflected in account 90.
Account 43 "Finished products" is intended to summarize information on the availability and movement of finished products. This account is used by material production enterprises. The posting of finished products manufactured (received) for sale, including products partially intended for the company's own needs, is reflected in the debit of account 43 “Finished products” in correspondence with the accounts for accounting for production costs. Finished products shipped or delivered on site to buyers (customers), settlement documents for which they were presented to these buyers (customers), is debited in the order of sale from account 43 "Finished products" to the debit of account 90 "Sales".
Account 44 "Sales costs" collects information about the costs associated with the sale of products and delivery to the consumer. This account is used industrial enterprises... It is also used by trade enterprises. It reflects the costs of transporting goods, wages, rent and maintenance of buildings and premises, advertising, etc.
Finally, account 45 "Goods shipped" is intended to summarize information about the availability and movement of the shipped products (goods), if the delivery contract provides for a different from the general procedure for the transfer of ownership from the seller to the buyer. In addition, it takes into account finished products transferred to other enterprises for sale on a commission or other basis.
In the management accounting system, of course, account 90 "Sales" is used, settlement accounts - 60, 62, 67, 68, 69, 70, 76, 79, as well as the main account financial results- 99 "Profit and Loss".
The presented review allows us to conclude that the majority of synthetic accounting accounts are involved in the management accounting system. If we take into account that, in development, many sub-accounts and analytical accounts are opened for them, which are necessary for solving various management tasks, then it becomes obvious: the work of an accountant-analyst is unthinkable without the use of computer technology. Today, modern personal computers are a necessary tool in the work of a managerial accounting specialist.
One of the steps towards the implementation of the Accounting Reform Program in accordance with the International Financial Reporting Standards, adopted in January 1998, was the approval of a new Chart of Accounts for the accounting of commercial organizations. Its practical use will make it possible to solve a twofold task - to ensure the transparency of external financial reporting and to preserve the commercial secret of management accounting.
As noted above, the organization of production accounting, in addition to the formation of an accounting plan, also presupposes a certain grouping of the enterprise's costs, depending on what is considered an object of cost accounting. In this case, it is possible: accounting of costs by type, by places of their occurrence, by centers of responsibility and by cost bearers.
Cost accounting by type- first necessary condition for the final cost control. This classification of costs is essentially determined by Chapter 25 of the Tax Code of the Russian Federation and PBU 10/99. These are material costs, depreciation deductions, labor costs, deductions for state and compulsory health insurance, other expenses. The organization of such accounting allows the company to calculate the structure of the cost of production - the percentage of individual cost elements in the total cost of production costs. As a result of the analysis of the structure of the cost, the enterprise has the opportunity to determine the available reserves for its reduction. So, the reserve for reducing the cost of material-intensive products (products in the cost structure of which there is a high share of material costs) is the rational use of materials. Capital-intensive products, where the largest share of costs falls on depreciation deductions, in order to reduce its cost, needs more efficient use of fixed assets, etc.
The above classification of costs by type can be expanded. However, for an objective assessment and cost accounting, they must be classified so that each primary accounting Document reflected one specific type of costs. For the convenience of accounting and subsequent analysis at a specific enterprise, a registration number is assigned to each type of cost.
Cost accounting by location- the second possible direction of organizing the accounting of production costs. A cost center is a structural unit of an enterprise that organizes planning, regulation and accounting of production costs to control and manage the costs of production resources. Cost centers can be workplaces, sections, teams, workshops, departments of an enterprise, for example, a design bureau, a technical control and quality control department, a tool shop, an advertising department, planning, financial departments, etc. Each such site is assigned its own registration number, which is recorded in the nomenclature of cost centers in the enterprise.
Cost centers are objects of analytical accounting of production costs by economic elements and costing items. They are often categorized into main cost centers and support cost centers. The first is understood as the divisions that directly produce and sell products on the side. All divisions that produce a product (provide services) for internal consumption are referred to as support cost centers.
For each cost center in management accounting, the units of measurement are established on which the costs are incurred (cost distribution bases). They are necessary for the subsequent calculation of the cost of production.
Accounting for costs in places of their occurrence allows the management of the enterprise to provide:
Effective and comprehensive control of the efficiency of both the enterprise as a whole and its structural divisions;
Distribution of overhead costs between individual types of products, which is necessary when calculating the cost of production.
The third area of accounting for production costs is accounting by responsibility centers... As noted above, a center of responsibility can be defined as a segment of an enterprise, for the results of which its manager is responsible. In management accounting, each cost center should have its own area of responsibility. The purpose of organizing accounting by responsibility centers is to accumulate cost and income data for each responsibility center in such a way that deviations from the estimate (the plan approved for the responsibility center) can be assigned to the person in charge. Actual data to the centers of responsibility are reflected by the accountant-analyst in the reports on the execution of the estimate, drawn up at short intervals. From these reports, the heads of the responsibility centers receive information on deviations from the estimates for various cost items.
The administration decides for itself in what aspects to classify costs, how much to detail cost centers and how to link them to centers of responsibility.
Finally, the fourth area of cost accounting is accounting by media... Depending on the technology and nature of the product, cost carriers can be products or semi-finished products, groups of similar products, series of products of the same name or individually manufactured products (orders), construction projects, completed stages of construction, types of work and services (transport, installation, etc.) ). In other words, these are types of products (works, services) of an enterprise intended for sale.
If an enterprise produces homogeneous products from the same raw materials and materials and differs only in size and modifications, then it has the opportunity to minimize the number of cost carriers, and, consequently, to simplify the calculation procedure. Otherwise, the calculation is preceded by distribution of costs according to their origin.
The cost allocation procedure consists of three stages.
The first step is to select cost accounting object, i.e. subject of activity, for the assessment of which it is required separate indicator costs. As noted, cost accounting objects are their places of origin, types or groups of homogeneous products. They can be orders, redistributions, types of production, structural units enterprises.
The second stage involves the selection and accumulation of costs related to this cost accounting object. These are, for example, production costs, costs of service departments, sales and administrative costs, costs of joint activities, etc.
At the final, third stage, the method of transferring the costs of auxiliary services to production units is selected.
After all the costs of the organization are transferred to production units, it is possible to distribute them according to cost objects (cost objects).
Thus, we can distinguish two independent blocks in the accounting and distribution of costs. The first one touches upon the issues of accumulation of costs according to the places of their occurrence, including the redistribution of non-production costs between structural production divisions. The second block involves the attribution of costs to a specific product.
The example below illustrates only the first block of cost accounting. The problems associated with the second block will be discussed in Ch. 3.
Example 6. Organizational structure The clinic that provides paid medical services is represented by two production units (therapy department and surgery department) and three non-production services (service units): administration, laundry, canteen. Table 2.10 the costs of the clinic for the reporting period are identified with cost centers. (In our example, they coincide with the clinic's responsibility centers.)
Table 2.10
The costs of the clinic's responsibility centers, c.u.
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In this case, the first two stages have already been passed. It is necessary to choose a method for further redistribution of costs and carry out the appropriate calculations.
In management accounting, three methods are known for redistributing the costs of non-production units between production segments: the method of direct cost allocation, sequential (step-by-step) and two-sided.
Direct cost allocation method the simplest: the costs for each service division are charged directly to the production segments, bypassing other service divisions. It applies in cases where non-production responsibility centers do not provide each other with services.
The costs are apportioned in proportion to any allocation base. The base can be the percentage of consumption by each production unit of the services of non-production units, the share of proceeds from the sale of each production cost center in the total revenue of the clinic, etc.
The basis for cost allocation is usually kept constant over a long period and is an element of accounting policies enterprises. It should be emphasized, however, that the selection of a distribution base is a subjective process.
Let's say you selected revenue share as the distribution base. Moreover, the share of the surgical department (surgery) in total amount of revenue is 60%, the share of the therapeutic department (therapy) is 40%. The results of this distribution of costs are presented in table. 2.11.
In cases where some non-production divisions provide services to other non-production segments, sequential (step-by-step) and two-way cost allocation methods are used.
Table 2.11
Results of cost allocation of non-production segments of the clinic using the simple allocation method
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Indicators |
Production units |
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surgery |
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Direct costs, cu |
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Share in proceeds from sales |
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Allocation of administration costs, c.u. |
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Laundry cost allocation, c.u. |
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Distribution of canteen costs, cu |
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Total costs after distribution, c.u. |
Method of incremental cost allocation applies in cases where non-production units provide each other services in unilaterally(for example, laundry services are unilaterally consumed by the canteen, while administration services are consumed by the laundry and canteen).
General cost allocation principle is as follows: the production unit, which consumes most of the services of the non-production unit, should be attributed a proportionally larger part of the costs of that segment. Of course, it is possible to distribute the costs of non-production units equally among the production centers of responsibility. However, in this case, deliberately inflated costs will be attributed to the treatment of patients in some departments, while in others they will be lower than in reality. Interests medical institution lie in the plane of obtaining real data, allowing an objective assessment of economic efficiency functioning of their separate centers of responsibility.
The process of allocating the costs of non-production units between production units is carried out in stages.
Step 1. Determination of costs by departments. All costs of the department are taken into account.
Step 2. Determination of the base unit, i.e. a unit of volume of services provided by an auxiliary unit, using which you can easily determine the consumption of these services by other units. So, for a laboratory, this is the number of analyzes performed (anal.); for the laundry - the amount of washed linen (kg); for the dining room - the number of prepared portions (pcs.); for a garage - vehicle mileage (km), etc.
Step 3. Allocation of costs. It is carried out on the basis of the selected base allocation units. General order distribution - from non-production units to production units. As a result of the distribution, all costs of the non-production units must be assigned to the production cost centers. After allocating the costs of one support department, it is no longer taken into account and is subsequently excluded from the incremental allocation process. Thus, after allocating the costs of a subsidiary cost center, we can no longer allocate to its account the costs of other subsidiary departments.
By attributing the costs of the clinic to the profitable responsibility centers, it is possible to calculate the cost of treatment, for example, in a medical or surgical department. If payment is made for discharged patients, then the amounts received must be divided by the number of these patients for the period during which the hospital costs were taken into account. As a result, it will be possible to compare the amount of income received for treating patients with the costs incurred.
Such information is extremely important for making the right management decisions. For example, if compensation for a patient exceeds the cost of his treatment, then it makes sense to expand this department or try to attract additional patients of this profile. If compensation is insufficient, then this information can be used as an argument in negotiations with funding authorities or when negotiating the terms of a health care contract with businesses or insurance companies. In addition, by periodically conducting such an analysis, it is possible to assess the trends in the cost of a health care institution by departments (centers of responsibility) and timely identify the reasons for these changes, as well as compare such indicators between different medical institutions.
Let's say that 10 people work in the administration of the clinic, 5 people each in the laundry and canteen, 20 people in the surgical department, and 30 people in therapy. The results of subsequent calculations are presented in table. 2.12.
Table 2.12
Results of cost allocation of non-production segments of the clinic using the stepwise allocation method, c.u.
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Hospital divisions |
Administration |
Intermediate |
Laundry |
Intermediate |
Canteen |
Total costs |
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Administration |
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Laundry |
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Canteen |
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Surgery |
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Total |
Step 1. Costs of the administrative department are allocated. The distribution base is the number of employees. Based on the number of employees in the centers of responsibility, we get a ratio of 10: 5: 5: 20: 30, or 2: 1: 1: 4: 6.
Administration costs ($ 900) are distributed among the rest of the centers of responsibility in a ratio of 1: 1: 4: 6 (total of 12 parts). We divide the administration costs ($ 900) into 12 parts: $ 900: 12 = $ 75. Then $ 75 we multiply by the received parts for each division and add to the costs. We get an intermediate calculation, the results of which are presented in gr. 4 of table 2.12.
Step 2. Laundry costs are apportioned. The basic unit in this case is the kilograms of the washed laundry. The canteen needs 20 kg, surgery - 60 kg, therapy - 40 kg of linen. We get the ratio 20: 60: 40, or 1: 3: 2 (total parts 6). The costs of the laundry ($ 300) are divided into 6 parts: 300: 6 = $ 50, which we then multiply by the received parts separately for each unit and add to the costs. We get an intermediate calculation, the results of which are presented in gr. 6 of table 2.12.
Step 3. The costs of the canteen are allocated. She needs to serve 100 patients in surgery, and 200 patients in therapy. We get a ratio of 100: 200, or 1: 2 (total of 3 parts). The costs of the dining room (600 USD) are divided into 3 parts: 600: 3 = 200 USD, we multiply them by the received parts for each center of responsibility (column 7) and add to the costs. We receive the final distribution data (column 8 of Table 2.12).
The third cost allocation method used in management accounting is called two-way (or by mutual distribution), which reflects the essence of production relations between the centers of responsibility. It applies when between non-production divisions exchange intra-firm services... However, manually without using software product it can only be applied if there are two non-production responsibility centers. Therefore, in our example, we will conditionally combine the laundry and the dining room into one unit - the utility block, the costs of which will be 225 (laundry) + 475 (dining room) = 700 USD. Thus, the administration consumes the services of the utility unit and vice versa.
Calculations are performed in the following sequence:
1) the indicator is determined, which acts as a distribution base, and, based on it, the ratio between the segments participating in the distribution of costs is calculated (we will choose direct costs as the distribution base) (Table 2.13).
2) the costs of non-production units are calculated, adjusted for the two-way consumption of services. For this, the following system of equations is drawn up:
example "> A - adjusted costs of the utility unit, cu;
K is the adjusted costs of the administration, c.u.
Table 2.13
Calculating the ratio between segments
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Service centers |
Centers consuming services |
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administration |
surgery |
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Administration: |
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We solve this system of equations by the substitution method:
K = 900 + 0.29 (700 + 0.242 K);
K = 900 + 203 + 0.07 K;
0.93 K = 1103; K = 1186 c.u.
Then A = 700 + 0.242 x 1186 = 987 c.u .;
3) adjusted costs are distributed among the centers of responsibility (Table 2.14).
Table 2.14
Results of cost allocation of non-production segments of the clinic using the two-sided method, c.u.
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Then you can go to the second block - the allocation of costs to the costing object (cost object). In our example, this means that you can calculate the cost of one medical services... This figure will depend on the number of patients admitted to the therapeutic and surgical departments.
The techniques and methods of calculation used in the management accounting system are discussed in Ch. 3.
Test questions and tasks
1. What are production costs (costs)? How do they compare with the costs of the enterprise?
2. What is called a center of origin and a cost bearer?
3. How are the costs of the organization classified for calculating the cost of goods manufactured and determining the amount of profit received? What are production and recurring costs?
4. What is the classification of costs for decision making and planning? Taking into account the peculiarities of the organization where you work, give examples of fixed, variable and conditionally fixed costs.
5. How is the cost responsiveness calculated? Give a definition of proportional, degressive and regressive costs.
6. What is a scale base and how does it affect cost behavior?
7. What are the types of costs in the implementation of the functions of control over production activities.
8. What costs are called indirect? What is their composition?
9. What is the essence of the method of high and low points? What is its practical significance?
10. What kind of accounts are used in management accounting?
1. Within the framework of a large-scale base, specific fixed costs with an increase in the business activity of the organization:
a) remain unchanged;
b) gradually decrease;
c) increase;
d) do not depend on business activity.
2. To make a decision on the choice of one of the alternative options, information is needed on:
a) relevant costs and benefits;
b) total income and expenses for each option;
c) controlled and uncontrolled costs;
d) all answers are correct.
3. Recurring costs consist of:
a) commercial and administrative expenses;
b) production costs, information about which has been accumulated in the accounts for the reporting period;
c) general shop expenses;
d) not a single answer is correct.
4. Imputed costs are taken into account when making management decisions:
a) in conditions of limited resources;
b) with an excess of resources;
c) regardless of the degree of resource endowment.
5. Opportunity costs:
a) are not documented;
b) may not mean real cash costs;
c) are usually not included in accounting reports;
6. The method of high and low points is intended for:
a) minimizing costs;
b) division of conditionally fixed costs into fixed and variable components;
c) optimization of production results;
d) all of the above is true.
7. Direct material costs within a large-scale base are:
a) permanent;
b) variables;
c) conditionally constant;
d) all answers are correct.
8. Conditional fixed costs can be described as:
a) Y = a;
b) Y = bX;
c) Y = a + bX;
d) not a single answer is correct.
9. The method of direct distribution of costs of non-production units between production centers of responsibility is used in the case when non-production units:
a) do not provide services to each other;
b) render services to each other unilaterally;
c) exchange counter services;
d) in all of the above cases.
10. The costs of packaging finished products for shipment to the consumer are:
a) production variable costs;
b) production fixed costs;
c) non-production variable costs;
d) non-production fixed costs.
11. The total fixed costs of the organization are 3,000 rubles, the volume of production is 500 units. products. With a production volume of 400 units. products fixed costs will be:
a) 2,000 rubles. in the amount;
b) 3,000 rubles. in the amount;
c) 7.5 rubles. per unit;
d) the second and third answers are correct;
e) none of the answers are correct.
12. Management accounting is not based on the attribute of cost classification:
a) by economic elements;
b) in relation to the volume of production;
c) by the method of inclusion in the cost of products (work, services).
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