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Abstract

Content

Introduction

Industrial enterprise management is a complex system, the key place in which is accounting for expenses, the information of which is used in procedures for monitoring the effective use of material, labor and financial resources. Restructuring of the industry against the background of the process of reforming the accounting of enterprises and organizations predetermines the need to outline clear objectives for formulating the nature and classification of production costs, determining mechanisms for the distribution of general production costs, introducing new methods for accounting for costs and calculating the cost of production and strengthening internal control over expenses at the enterprise.

1. Relevance of the topic

To make optimal management and financial decisions, the company needs to know its costs. Comprehensive accounting of income, expenses, calculation of the cost of goods sold, work performed and services provided are key accounting issues at any enterprise, regardless of what type of activity it is engaged in. The above determines the relevance of the topic of the master's thesis.

2. Goal and tasks of the research

The purpose of this final qualification work is to justify the theoretical and methodological provisions of cost accounting, identify deficiencies in the organization and practice of accounting and audit of expenses, as well as develop specific recommendations for their improvement.

In accordance with the purpose of the study, the following tasks were posed and solved in the work:

Object of study: accounting and audit.

Subject of research : a set of theoretical, methodological and organizational provisions for cost accounting in industrial enterprises.

As part of the master's work, it is planned to obtain relevant scientific results in the following areas:

3. Review of research and development

3.1 Overview of international sources

Leading American researcher R. Anthony understands costs as a monetary measurement of the amount of resources used for some purpose. Also, information on costs in accounting and management accounting, problems and solutions was dealt with by L. Sukhina.

By the work of Danilenko O.A. A new system of accounting and reporting is considered, as well as the main methodological principles of cost accounting. The economic nature and content of expenses is reflected in the work of such a scientist as Khripach V.Ya. In his article Trinka L.Ya. focuses on the practical side of cost accounting. She also offered her understanding of the essence of expenses and the procedure for reflecting them on accounting accounts.

Yurchenko K. P. in his work considers what is common between costs and expenses, offers the costs of industrial enterprises to be classified in two directions: according to their type of activity and management functions. It also offers new, in comparison with domestic systems, elements of cost grouping: depending on the market, a group for pricing and operational decisions.

The most in-depth study of the problem of improving the accounting for costing of production costs was obtained in the works of Bezrukikh P.S., Ivashkevich V.B., Paliya V.F., Novichenko P.P., Sukhorukova V.I., Stepanova Yu.V. .

In the works of Ivashkevich V.B. and Novichenko P.P. investigated the theoretical foundations of calculation, the nature and structure of elements and methods, intersectoral aspects of accounting and calculation.

By the authors of the works Bezrukikh P.S. and Palia V.F. outlines the basic principles of formation and accounting of costs of production and calculation of production costs, considerable attention is paid to the features of cost accounting in strategic industries. A detailed analysis of the losses of raw materials and finished products in the material balance of the industrial process, as well as their sources, was carried out by the authors in the work of Stepanov Yu.V.

At the same time, the indicated works do not solve the problems of an integrated and systematic approach to accounting and calculating the cost of production; the issues of the quality of derivative raw materials and its impact on the yield of the finished product, accounting for regulatory and excess losses, an objective assessment of related products and production wastes, as well as methods for their accounting, are not considered.

In this regard, the development of a new methodology for calculating the cost of production, eliminating these shortcomings is very relevant.

3.2 Overview of national sources

The contribution in this direction was the work of the founders of this direction, such as Aksenenko A.F., Belobozhetsky I.A., Dodonov A.A., Zhebrak M.Kh, Ivashkevich V.B., Karpova T.P., Lastovetsky V.E., Novichenko P.P., Paliy V.F., Sokolov Y.V., Stukov S.A., Tkach V. AND., Chumachenko N.G., Sheremet A.D. other. A large contribution to the development of management accounting, including budgeting techniques, was made by domestic researchers, such as Vakhrushina M.A., Kerimov V.E., Kizilov A.N., Kondratova I.G., Labyntsev N.T., Mironova O.A., Nikolaeva S.A., Khrutsky V.E., Sharovatova E.A., Tkachenko N.M., Sotnikova, L.V., Suk L.K., Sopko V.V. other. [19 - 22]

3.3 Overview of local sources

At Donetsk National Technical University (Department of Accounting and Auditing), such scientists as Gavrilenko V.A., Leonova L.A., Chernikova E.G., Zadorozhnyuk V.Yu. dealt with issues of accounting and audit of expenses.

The authors of the work Gavrilenko V.A. and Chernikova E.G. the methodology for calculating the cost of production of metallurgical coke was improved based on the identification of unproductive losses of raw materials, finished and related products based on the preparation of material balances. [14]

In the work of Leonova L.A. recommendations are given on improving accounting for the depreciation of fixed assets. Also highlighted are the methodological and organizational foundations of cost management in industrial enterprises in the work of Zadorozhnyuk V.Y.

4. Costs – basic concept, classification

Costs in an accounting sense are different from costs in an economic sense. As a general economic category of expenses characterized by the use of various substances and forces of nature in the process of managing. Under economic costs understand expenses of missed opportunities , that is, the amount of money that can be obtained at the most profitable of all possible alternative resource use options. Thus, the economic costs of any resource selected for production are equal to its cost at the best of all possible use cases. The concept of economic costs is due to limited resources compared to the number of options for their use. From an accounting point of view, costs & ndash; it is only a specific resource cost.

According to P(S)BU-16, costs are understood to mean a decrease in economic benefits resulting from the disposal of assets or an increase in liabilities that lead to a decrease in equity (except for a decrease in capital due to its withdrawal or distribution by owners.[6]

Cost Classification – This is a grouping of costs according to certain criteria. Classification helps to better understand the essence of costs, to study the order of their formation and purpose of use.

Given foreign experience, we distinguish three areas of cost classification:

  1. To assess stocks and determine financial results;
  2. For making management decisions;
  3. For control and regulation.

In the third direction, expenses are divided into controlled (regulated) and uncontrolled (unregulated), which is important for management activities (Fig. 3). This classification means a measure to which the manager can control costs and be responsible for them.

Figure 1 – Animation of cost classification for control and regulation
(animation: 3 frames, infinite number of repetition cycles, 26.4 kilobytes)

Conclusions

During the writing of the master's thesis, the theoretical knowledge and practical skills of financial accounting of entrepreneurial activity were consolidated and deepened, information was prepared and presented to various users to develop, substantiate and make decisions in the field of financial policy, economic management, taxation.

We also systematized, consolidated and deepened theoretical and practical knowledge in the relevant area of ??higher education; developed independent research work skills and mastered research methods; gained experience in analyzing information from the results of the study.

Costs are understood to mean a decrease in economic benefits resulting from the disposal of assets or an increase in liabilities that lead to a decrease in equity (with the exception of a decrease in capital due to its withdrawal or distribution by owners).

Expenses are recognized as expenses of a certain period at the same time as recognition of the income for which they have been made.

Given foreign experience, there are three areas of cost classification:

When writing this essay, the master's work is not yet completed. Final completion: June 2020. Full text of the work and materials on the topic can be obtained from the author or his manager after a specified date.

References

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