Cost accounting for production is primarily focused on the management of the enterprise, department heads and founders. The analysis of such accounting allows you to develop a unified and optimal approaches for managing the enterprise and production processes that will reduce costs and, accordingly, will increase profits.
Cost accounting for production can become the basis for such areas:
Forecasting - analysis of current and past changes in production costs and the construction of possible costs and their changes in the future;
When determining the cost of production of pedagogy;
Analysis of the costly part of production and the search for opportunities and reserves to reduce the costly part;
Regulation and control of the enterprise, and the adoption of management decisions on the basis of this.
Accounting for production costs allows us to solve a number of problems.
Firstly, this is the cost of production. Which actually consists of the costs of production and sales. The calculation of such an indicator as cost is one of the key factors that allows you to determine the profitability of the entire enterprise.
The tasks in accounting based on production costs are considered to be: accounting for the volume and range of products manufactured by the enterprise, its quality, work and services performed, direct and actual costs of production, monitoring compliance with estimates for production of maintenance and management, evaluating the results of activities of structural units of the enterprise and as a result, the search for mechanisms to reduce production costs.
Cost accounting for production and its classification.
Among the costs of production, we can distinguish synthetic accounting of production costs, which is carried out according to a certain scheme in stages, taking into account all primary costs and their purpose.
And based on the data of this type of accounting, analytical accounting of production costs is made. This type of cost accounting for production is organized depending on the goals of accounting and control in the context of synthetic accounting.
The rest of the production costs are grouped into specific groups.
The first group is the main costs. This is part of the costs associated with the process using raw materials and other general manufacturing costs.
The second group is overhead. This type of cost is formed in connection with the process of organizing and servicing production, as well as managing it.
The accounting of production costs also considers the so-called single-element costs that are expressed in one cost element - wages, etc.
In addition, there are complex costs. This type of costs and expenses may contain several elements.
Also, according to the form of the impact of costs on the cost of production and the production process , direct and indirect costs are distinguished . Directly called that part of the costs that directly affect the formation of cost (basic materials and raw materials, manufacturing defects, etc.). Indirect costs are not directly related to the cost of specific types of products. They are distributed conditionally and determined by overhead, overhead, overhead costs.
Also, constancy distinguishes between variable costs and conditionally constant. The difference between them is the change in the magnitude of these costs. If the variables directly depend on the volume of production, then the second conditionally constant change under the influence of general production and general expenses.
Thus, accounting for production costs, manipulating with all the above classes, types and categories of expenses, as a result provides a clear and clear picture from which the magnitude of these costs is clearly visible and which segment of production has a large cost.