Abstract
This abstract is used as an example, with the permission of Evgeniy Tatolov.
Original: http://masters.donntu.ru/2011/fknt/tatolov/diss/indexe.htm
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- Introduction
- 1.Classification of expenses for the needs of enterprise management
- 2.Peculiarities of formation of accounting policy in relation to the expenses of the enterprise
- Conclusions
- List of sources
Introduction
Any kind of economic activity is related to spending. The amount of costs affects the cost of production, the total income of the enterprise and, accordingly, the amount of tax payable to the budget, as well as the profitability and payback of the enterprise and to strengthen its competitiveness. Therefore, cost accounting is an important object of accounting and requires special attention.
The change in the concept of enterprise management in the current conditions of management, reform of accounting has become an impetus to increase the research interest in the development of accounting of costs and performance.
The aim of the work is to study the theoretical aspects of accounting for the costs of an enterprise.
To achieve this goal, the following tasks are set in the work:
-expand types of expenditure classifications for the needs of effective enterprise management;
-expand the specifics of the formation of accounting policy in relation to the costs of the enterprise.
The object of the study is the organization of accounting of expenses at the enterprise.
The subject of the study is the costs of the enterprise.
The scientific novelty of the study is to improve the system of provisions of the enterprise's accounting policy in relation to the costs of the enterprise.
The main elements of scientific novelty were tested and published in the materials of the III International Scientific Internet Conference of Students, Postgraduates and Young Scientists (Donetsk National University of Economics and Trade named after M.Tugan-Baranovsky, May 26, 2017 "Status and Prospects of Development of Accounting and Control in modern management concepts").
SECTION 1 CLASSIFICATION OF EXPENDITURE OF THE ENTERPRISE
Any kind of economic activity is related to spending. Expenditures are the reduction of economic benefits during the reporting period in the form of asset retirement or in the form of liabilities that result in a decrease in equity (which is not related to payments to founders). Expenses are recognized when it is probable that future economic benefits associated with a reduction in assets or an increase in liabilities will be reduced can be reliably determined [1]
The creation of an orderly structure of the company's expenses requires the implementation of an economically justified classification of the individual characteristics. This involves the allocation and generalization of expenses by groups to provide information in a form convenient for management and analysis.
Classification is necessary for the organization of economic work of the enterprise, determining the cost of production and pricing, rationing, planning, control and analysis of costs. Selected classification characteristics should provide a comprehensive study and grouping of costs in the desired section. The more features of classification are allocated, the higher the degree of cognition of objects. The correct choice of classification characteristics is the key to obtaining the necessary and reliable management information, ensures the effectiveness of decisions made on the basis of an enterprise cost analysis.
The study of views on the classification of expenditures, which are covered in the modern economic literature, allow us to conclude that there is no single approach. In addition, the results of the analysis of scientific developments on this issue indicate a different number of directions for the classification of this object of accounting and analysis.
Thus, V.V. Sopko [20, p. 233] defines 10 directions of the economic-legal and planning-accounting grouping of the company's expenses:
-on economic elements (cost elements);
-at the place of origin - cost centers (farm, enterprise, production, commercial-structural unit, section, brigade, etc.);
-by types of products (products, works, services);
-in relation to the calculation (calendar) period (current or before and after the calculation period);
-how to include the cost elements in the accounting object and the costing object (direct, indirect);
-in relation to the cost of production (costs included in the cost of production);
-on cost elements (cost items);
-in the sphere of origin (before production, production, non-productive (non-productive);
-in extent of plan coverage (rationing) (planned, unplanned);
- homogeneity of the composition (homogeneous, heterogeneous - complex).
According to V.F. The Pyro [17, p. 12], the company's expenses should be classified according to: the phases of the circuit; relation to technology; influence on the volume of production; the method of inclusion in the cost price; frequency of occurrence; relation to production; a method of production; degree of generalization; relation to sales; expediency.
The most common in the economic literature is the classification of costs in three areas:
1) for estimating reserves, determining the cost of production and profit (production costs and period costs, basic and overhead, direct and indirect, single-element and complex production and non-productive, etc.);
2) for the implementation of the control and regulatory process (regulated and unregulated, normalized and unregulated, planned and unplanned, etc.);
Classification of costs by organizational and management criterion
1. By the degree of influence of production volume on the level of costs:
- constants, variables, semi-variables, semi-permanent, mixed
2. At the place of control:
- on the places of formation (occurrence), on the centers of responsibility
3.According to the Responsibility Center:
- production costs, shop costs, expenses, plots, etc.
4. By the level of controllability:
-controlled, uncontrolled, partially controlled
5. On the influence on decision-making:
-relevant, irrelevant (incorrigible, unrepeated), differential
6. Regulatory:
- adjustable, unregulated
7. In relation to the capacity of the enterprise:
- mandatory, discretionary
8. Using the calculation method:
- marginal, medium
9. On the functionality of the activities:
- production, non-production (general company)
10. The order of calculation:
- medium, limiting
11. By appointment:
- technological, organizational
12. By nature of production:
- main production, auxiliary production, servicing production
13. By area of activity:
- production costs, non-production expenses, core and auxiliary production costs, logistics costs, development costs of new technologies
14. In the direction to ensure management objectives:
-results on motivation, social development, innovation, marketing research and communications, depreciation and other costs of current production and economic activities
15. By type of activity of the enterprise:
- operational, investment, financial
16. By the date of generation of profit:
- directed to the development of the enterprise, related to current production and economic activities
17. With respect to the sources of coverage:
- input costs (balance of finished goods at the beginning of the reporting period), current expenses (production cost of finished goods of the reporting period), output costs (cost of sales)
18. On the phenomenon of rarity (limited possibilities for alternative use of resources):
- explicit (external), implicit (hidden)
19. In relation to the volume of production:
- variables, constants, mixed
For the adoption of management decisions and planning (permanent and variable, relevant and irrelevant (irretrievable), medium and marginal, etc.). The topical issue remains the definition of priority areas for the classification of expenditures for the needs of management accounting and economic analysis, taking into account the organizational and technological characteristics of enterprises.
The dependence of the classification of expenditures on the purpose of management is recognized by practically all scientists who study the indicated problems. Thus, according to K. Drury, in the accounting system, first of all, information on the three categories of costs: the cost of materials, labor and overhead. After that, the generalized costs are distributed according to the directions of accounting:
- for calculating and estimating the cost of production;
-for planning and making managerial decisions;
-for the process of control and regulation.
In addition, in each of the above directions, further detailing of costs occurs depending on the purpose of management. Heads and some foreign authors believe that the classification of costs should be based on the principle "different directions of classification - for the implementation of various management functions," since the separation of costs for different types is used in the management of various spheres of the enterprise's activity [5, p. 314].The study of the cost behavior at the enterprise shows that most of them are ambiguous and their division into separate groups is rather arbitrary. Some expenses can be directly attributed to products, others - no. certain costs may be important for adopting one type of decision and not matter for the other. Expenditures that are attributed by different authors to similar directions of expenditure classification differ. Also there is no unambiguous grouping of costs: certain types of expenses are included in different directions.
Classification of costs by accounting and analytical criteria
1. By the method of transferring the cost of production:
- direct, indirect
2. By composition:
- simple (singleton), complex
3. In relation to the types of production processes;
- basic, invoices
4. In relation to the reporting period:
- expenses of the current period, future period expenses
5. With respect to the finished product:
- expenses of the period, expenses for finished products
6. On economic content (cost elements):
- material costs, labor costs, deductions for social activities, depreciation, other expenses
7.On the intended purpose (according to the costing items):
- direct production costs, maintenance and operation costs of machines and maintenance, general production costs, administrative costs, sales costs
8. By types of products (works, services):
- expenses for products, groups of homogeneous products, gross output, marketable products, sold products
9. The order of calculation:
-planning (budgetary, forecast), regulatory
10.It is included in the estimate (costing):
- planned, unplanned
In practice, for financial accounting purposes, the classification given in P (C) BU 16 "Expenses" [18] is used, and for administrative purposes (planning and calculating the cost of production) - is presented in the Instruction for Planning Accounting and Calculation of Cost of Products, whose operation is suspended after the implementation of the Order of the Ministry of Industrial Policy of Ukraine "On the approval of methodological recommendations and the formation of production costs (works, services) in industry" [13]. It does not meet modern technology and the organization of production. Some items of expenditure are obsolete ("Shop costs", "non-production costs"), but did not reflect the costs of marketing and sales.
The increase in the share of semi-finished products in the cost of production, the grouping of costs by responsibility centers and the dependence of costs on production volumes are also not reflected in this classification. In this connection it is necessary to group the costs according to the criteria that characterized the various aspects of the enterprise's activities. We see it expedient to choose the following criteria: organizational, managerial, accounting, analytical and financial economics. The organizational and managerial aspect includes the directions of classification that provide analytical information. This allows you to evaluate the cost-effectiveness of producing a particular type of product and for each responsibility center separately. Effective managerial activity can be only when managers receive exhaustive information on the relationship of costs for each of their elements, from the production of specific types of products to the completion of the production process or before its beginning - as a forecast. Therefore, information about the costs of production in management accounting should be sufficiently detailed and operational.
Depending on the direction of the statutory activity, enterprises differ in terms of technological process, organizational structure, relationships with partners and contractors, as well as interaction between individual structural divisions. Typical features of the company are primarily in the organization of production, which is determined by the technology of manufacturing products, therefore, the content, volume, type and form of providing information necessary for managing the production process are determined by each enterprise independently. At the same time, the correct organization and timeliness of cost accounting by types of products and divisions, that is, the proper organization of analytical accounting, are of particular importance. Classification of costs by accounting and analytical criteria unites the directions that reveal the nature of the production process, the features of the products produced by the enterprise. Analytical accounting data are used in the preparation of internal reporting, which is based on information on the types and quantity of products, on the centers of responsibility and expense items.
The presented approach to classification of expenses as a whole covers all spheres of activity and generalizes types of expenses inherent in the enterprises of the industrial complex. The proposed classification of costs will improve the effectiveness of their management; strengthen their consumption control; to identify reserves to increase the effectiveness of activities; improve the organization and methodology of accounting for costs in an industrial enterprise.
SECTION 2 PECULIARITIES OF ACCOUNTING FOR ACCOUNTING POLICIES OF EXPENDITURE ENTERPRISES
Today, it is possible to use several approaches to the organization and accounting, on the one hand, it gives some freedom to enterprises, on the other - it causes the need for each enterprise to develop its own accounting policies. Ability to choose specific methods of valuation, calculation, composition and order of accounts, accounting forms, etc. - all this as a whole constitutes a certain degree of freedom, has an enterprise when forming accounting policies. The normative definition of the term "accounting policy" is given in the Law on Accounting and Financial Reporting, which states that the accounting policy is a set of principles, methods and procedures used by an enterprise for the preparation and presentation of financial statements. The main objective of the accounting policy is to ensure the receipt of reliable information about the financial condition of the enterprise, the results of its activities, which are necessary for all users of financial statements with a view to making appropriate decisions.
So, accounting at the enterprise begins with the development of accounting policy. Thoroughly thought out, it determines the effectiveness of accounting. Also, the accounting policy as a set of principles, procedures and methods of accounting, should ensure the maximum effect of accounting.
To date, there are already more or less stable views of authors on objects that should be considered in the accounting policy of the enterprise. Among such objects most often allocate: fixed assets, intangible assets, low-priced fast-wearing items, production stocks, financial investments, accounts receivable and accounts payable and, of course, company expenses.
Summarizing the views of different scientists on the elements of accounting policy on accounting for the costs of the enterprise, we can say that, as a rule, such elements are considered: the choice of the calculation object, the distribution of production for the main, auxiliary and servicing, the way of distributing overheads, the evaluation of work in progress and finished products, the way of grouping and writing off production costs, choosing the calculation period and the period for determining the financial result. All this, of course, mainly relates to accounting for the costs of manufacturing enterprises [3, p. 2].
Accounting for costs, including production costs, plays an important role in information management of the enterprise. Since the amount of expenses affects the cost of production, the total income of the enterprise and, accordingly, the amount of tax payable to the budget, the profitability and payback of the enterprise and to strengthen its competitiveness. Cost management is an important function of the economic mechanism of each enterprise, therefore the accounting of expenses and management of them occupies a special place in the accounting system of the enterprise.
The formation and implementation of the accounting policy of enterprises and the organizational and methodological foundations of the formation of the company's accounting policy are covered in the scientific works of Russian scientists: M.T. Belukhi, I.A. Belobreztsky, F.F. Butintsya, S.F., Chairman, G.G. Kiretseva, P.T. Sabluka, V. Sopka, L.K. Sook, S.A. Nikolaeva, V.F. Pyro, V. Shvets and others.
At the present stage, the problem of understanding the role of the formation and implementation of the accounting policy of the enterprise by its owners, managers and specialists of the middle management level is quite topical. Most of them perceive accounting policy as such a document that must necessarily be in the enterprise, but special significance as a tool to ensure the accounting process does not have. This document is formed superficially, without taking into account the specifics of a particular enterprise, that is, there is no clear process or algorithm for its formation.
To the main shortcomings of formation of the accounting policy of enterprises at the present stage Levchenko AP [4] highlights the following:
-separate enterprises order on accounting policy formally, the elements of the order are not substantiated and duplicate separate paragraphs of normative documents;
-the content of most orders on accounting policy is not structured;
-some issues of formation of accounting policies of individual facilities are given in full or not at all;
-the accounting policy on organizational and technical aspects of accounting is not developed, namely: the working chart of accounts, the schedule of document circulation, the list of accounting registers used at the enterprise and the like are not in the annexes;
-the accounting policy on management accounting is not developed.
Focusing on the elements of accounting policy on cost accounting and summarizing the views of various scientists on this problem, it should be noted that each author has his own opinion on this matter. Among the elements that are most often considered by researchers, one can name the way of allocating overhead costs. Proceeding from the fact that the choice of the basis for the distribution of overheads depends on the type of production, their sectoral nature, material intensity and labor intensity of production, etc., it is necessary for each enterprise, having analyzed all possible options, to choose the optimal method for itself and to mark it in the Order accounting policy.
In second place in the recurrence when considering elements of accounting policies is the method of accounting for production costs. Features of technological processes do not allow to complete the production of all products, the production of which was started in the reporting and even in previous periods. If enterprises do not differentiate the expenditures of the reporting period between the completion and the uncompleted production of products (works, services), they do not calculate the value of the balances of work in progress, this leads to an overestimation of the cost of sales and, consequently, to the unreliability of the financial result of the enterprise and taxation objects. That is why, another important problem that needs to be addressed and reflected in the Ordinance on the accounting policy of the enterprise is the evaluation of unfinished production and finished products.
To the above elements of accounting policy AA. Efremova [1, p. 67] includes the method of calculating the unit of production, the distribution of production for the main, auxiliary and serving and the method of consolidated accounting for production costs. In general, organizational, methodological and technical aspects (components) are components of the accounting policy of an enterprise. Each component of the accounting policy of the enterprise combines the relevant objects, for which there are alternative options - the elements. Let's consider each aspect of accounting policy in respect of costs separately [5, p. 158].
Components of accounting policies for expenditure
1. Organization:
Displays the order of the organization of work of the accounting device, in which it is necessary to display: the list of persons responsible for keeping records of production costs and their job descriptions, a list of cost centers and areas of responsibility; commercial secret and the procedure for its protection; system of internal control, etc.
2.Methodical:
The main components of the cost of production are the following (taking into account the requirements of BU 16 "Costs"): the list and composition of the costing articles, the method of calculating the cost of production, the list and composition of variables and permanent general production costs, methods for estimating inventories on disposal (may significantly affect the amount of expenditure ) base for the distribution of indirect costs of the main production;
3.Technical:
Should provide for the following components: a working chart of accounts in the context of cost centers and responsibility centers, the form of primary documents for calculating the cost of production, accounting registers, flow of documents on objects of costs, the composition, procedure, deadlines for internal reporting; the procedure for inventorying work in progress; responsibility for signing primary documents, reporting.
It is also advisable to allocate in the organizational structure of the accounting department the position of accountant in the accounting of production and the assignment of the responsibility for keeping records on the costs of production for it. When developing the job description, it is necessary to clearly identify his rights, duties and responsibilities with respect to production costs.
The methodical block determines the choice of the methods and methods of the specific variant of the reflection of economic transactions in the system of accounting accounts proposed by national provisions. This choice allows you to find the most appropriate option for a particular organization, taking into account the specifics of the organization of the business process, the specific capacity of the firm to provide material and technical and labor resources.
In connection with the adoption of the adopted Law of the People's Democratic Republic "On the tax system", each business entity should review its accounting policy. If earlier the order on accounting policy regulated solely the accounting rules, then with the adoption of a tax legislative document, it will also affect tax accounting. So, in accounting for expenses, the accounting policy of the enterprise should determine the list of items and the composition of the articles for calculating the production cost of products (works, services) [9, p. 190].
According to item 11 Ï (Ñ) ÁÓ 16 "Expenses" [8] the enterprises should establish them independently.
The production cost includes:
1) direct costs;
2) direct labor costs;
3) other direct costs;
4) variable general production and permanent distributed general production costs.
Today, it is necessary to take into account the role of accounting policy in the process of enterprise management, since it can influence the production and business processes. After all, accounting policy is much broader than accounting, its content can be called accounting management system, it is based on the basics of management accounting, has a management focus and is one of the directions for the development of accounting as a science. At the same time, accounting specialists need to provide information to both internal and external users in a certain format. Therefore, the format of the preparation and presentation of information should be fixed in the administrative document on the formation of accounting policies.
Thus, the accounting policy in terms of costs for the production of finished products is of great importance for the effective organization of accounting, since the expediency, validity and detailing of the process of recording production costs is necessary for making managerial decisions, determining the results of the enterprise, performing certain tasks by structural divisions, actual efficiency of organizational and technical measures for the development and improvement of production.
Conclusions
The largest share in all costs of the company is the cost of production and sales of products. The total of production costs shows the production cost of production. Enterprises also generate costs for the sale of products, i.e. out-of-production expenses. Accordingly, the costs of the enterprise in the production process are the costs of production, and sales, procurement, trade and intermediary costs are the costs of circulation. The second category is the expenses for the payment of labor of the main production personnel, as well as the expenses for the payment of labor for workers who are not in the staff of the enterprise, who are engaged in the main activity. The third element is deductions for social needs or extra-budgetary social funds.
The enterprise allocates general economic, general production and commercial expenses. They are related to the maintenance and management of production, the management of the enterprise as a whole, the costs of packaging and packaging, transportation costs, advertising costs, and other marketing expenses, respectively.
Another major major element of expenditure is depreciation of fixed assets, equal to the amount of depreciation. All objects of fixed assets are subject to physical and moral deterioration, so periodically there is a need to replace fixed assets.
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