Direct cost allocation method examples with explanation. Cost allocation methods. Data on the number of orders and the number of employees

Cost Management System

An important role in the cost management system is played by the distribution of costs depending on the volume of production. The quality of management decisions at the enterprise will depend on how accurately and in detail this analysis will be carried out. There are several main groups of cost allocation methods.

The first group includes analytical method. It includes a record-based methodology accounting registers and engineering method.

In the first case, the General Ledger is analyzed, each amount in which is attributed to production accounts - 20, 23, 25, 26, 44 and classified into fixed, variable and mixed costs.

Having determined the type of costs, its amount is determined using documents - work orders, supplier invoices, timesheets, and others. For example, you can determine that costs are fixed using depreciation tables. If the standard period does not expire next year and depreciation costs are maintained, then the costs remain constant. But this must be constantly monitored, so the method is quite laborious and rarely used.

In the engineering method, it is not the costs of past periods that are analyzed, but standards are set in kind for the expenditure of resources and based on technological necessity. Costs are determined by multiplying the standards by prices.

The method divides costs into fixed and variable and is applied to all subjects of an economic entity. With changes in production conditions, there are adjustments in the calculations. But this method is also labor intensive and it is very difficult to set standards for overhead costs. As a rule, this method is used when new products appear and there are no statistical data for past periods.

The second group uses the method of high and low points or mini-max method.

This method is based on observing the value of costs at the maximum and minimum volumes of production activity.

Calculation algorithm:

1. But based on the data on the volume of production, the minimum and maximum are calculated in the costs and in the values of the production volume.

2. Differences are found between the maximum and minimum values in terms of production volume and between the maximum and minimum values in terms of costs.

3. Using the relationship between the difference in costs and the difference in production volume, the rate of variable costs per product is determined.

4. Fixed costs are determined by the formula:

Y \u003d a + bxX, (1)

At- total costs for the maximum or minimum value of the volume of production;

X- the maximum or minimum value of the volume of production;

a- the total amount of fixed costs;

b- the rate of variable costs per product.

This method is not difficult to use, but it is not very reliable, it all depends on how typically, in relation to the entire data interval, the highest and lowest points are located. Two points are not enough to calculate, and extreme values can be harmful, as they are not typical for the interaction between costs and business activity. Therefore, methods based on a large number of observations of the behavior of costs are used to more accurately calculate the value of costs.

Visual Approximation Method. This method is based on plotting based on observations. The initial data is displayed in a table that displays the observation period, output and total costs.

The graph displays cost and volume points and a straight line appears that shows the relationship between them. The point of intersection of this line with the y-axis determines the amount of fixed costs.

This method covers all data but is very subjective. One mistake in drawing a straight line and it will lead to an incorrect managerial decision. Looking at the visual approximation method, it is impossible to determine the correctness of the estimate. Therefore, this method is usually used for a preliminary assessment of variable and fixed costs.

Such an element of the control function as cost analysis helps to evaluate the efficiency of the use of all enterprise resources, identify reserves for reducing production costs, collect information for preparing plans and making rational decisions. managerial decisions in the area of costs.

The goals of creating a cost management system:

optimization of financial results through profit maximization;

Achievement of greater flexibility in the management and control of production costs;

· an objective assessment of the results of economic activity.

The main tasks of cost management should classify costs by type, by cost center, by their carrier, prepare a regulatory framework and standardize costs per unit of output, control and analyze costs.

There are two forms of communication between management and financial accounting, and they give two management systems: autonomous and integrated.

In an autonomous system, financial and management accounting are separate and keep a trade secret about the costs and profitability of production.

The main differences between financial and management accounting can be understood in Table 1.

Table 1

Key Differences Between Financial and Management Accounting

financial accounting	Management Accounting
Maintaining financial and accounting records is required by law	Depends on the desire of top managers
Costs are grouped by economic elements	Costs are grouped by costing items
Cost accounting is not taken into account at the point of origin, only synthetic cost accounting is maintained, therefore, information is provided on the total amount of costs for the production of finished products	Detailed cost accounting information. Reflects material, labor costs used in the main production, general production and general business
Income accounting: the total amount of income. Reflected on account 80. Reflected on the balance sheet profit, which takes into account, in addition to profit from the main activity, non-operating income and expenses, profit, losses from other operations	Income accounting: two financial results of production activities are reflected - marginal income and profit. At the end of the period, fixed costs collected on account 26 as periodic are written off to the cost of goods sold
Units of measurement: monetary	Units of measurement: any
Degree of accuracy: Only exact figures of the past period	Degree of accuracy: Approximate estimates and assumptions are possible for any time period
Consumers: External and internal users	Consumers: Exclusively internal users

The connection between them is carried out using paired control accounts of the same name, which are called reflected or mirror accounts.

At integrated accounting system a unified system of accounts and accounting entries is used, and with the help of control accounts, a connection is made between financial and management accounting.

The cost management system generates information about the costs for managers of various levels of management within the enterprise in order to make the right management decisions.

An exemplary scheme for cost analysis by hierarchical levels of management is as follows:

The financial director of the enterprise is presented with: cost estimates for the divisions included in the enterprise, administrative and management expenses for the enterprise as a whole, sales costs, distribution costs, a report on the execution of estimates for the enterprise as a whole;

· to the head of production - costs for the divisions included in this production, information about the content of the office of the head, a report on the execution of estimates for production;

· to the head of the department - the cost of basic materials, the production rates of the main workers and their prices, the salary of auxiliary workers, auxiliary materials, energy, fuel, maintenance, other costs, downtime, total costs for the division.

At each of these levels, the costs are compared according to the planned and actual estimates, deviations for the reporting period and changes compared to the previous one are identified, which are divided into favorable and unfavorable.

All primary information about costs falls on the first level and the higher the level, the more abbreviated and less detailed the report will be. The director of the enterprise will only receive information about deviations in the enterprise and the costs that he can influence. Thus, only those costs that relate to each level fall into each level.

The strategic level of management assumes the maximum allowable level of costs for a particular product, thus controlling competitiveness, variation in the purchasing power of the population, and the impact of government policy.

The organization of the system establishes who, in what time frame, using what information and documents, in what ways manages costs in the structure. Correlate cost centers and responsibility centers.

Timely coordination and regulation of costs allow the enterprise to avoid a serious disruption in the implementation of the planned economic performance.

There is such a cost management system as "Standard-cost". The creator of this system is an American economist Charter Garrison. The name "Standart Costs" refers to the cost that is set in advance (as opposed to the cost that is collected).

"Standard" - the number of material and labor (direct) costs necessary for the production of units of products, works and services or pre-calculated material and labor costs for the production of a unit of products, services, works. "Cost" is a monetary expression of the production costs for the manufacture of a unit of product.

Principles of cost accounting using the standard-cost method:

1. Development of norms (standards) of enterprise costs for each type of work and services

2. Drawing up a standard calculation of the cost of products, works, services.

3. Accounting for actual costs during the month, dividing them into costs according to norms and deviations from norms.

When these principles are followed, reliable information about the costs of the enterprise will be obtained.

The variance cost sharing principle provides the information underlying this system. Thus, the main focus lies on their identification and analysis, with the aim of their further prevention.

Standards depending on the price level:

· Ideal - implies the most favorable prices for goods, services and works.

· Normal - calculation at average prices in a certain economic cycle.

· Current - calculated at prices in a separate economic cycle.

· Basic - used to calculate the price index, since prices are set at the beginning of the year and do not change during the year; they are set at the beginning of the year and do not change during the year.

At enterprises, accounting for deviations from the norms is usually carried out according to these accounts:

· Consumption of materials

· Wage

Overhead costs

Cost price

The features of the system are that deviations are detected not with the help of documentation, but on special accounting accounts. Not everyone who uses this system reflect deviations from the norms in accounting. Some use special synthetic accounts for accounting, accounts for costing items and variance factors.

There are three options for reflecting costs in the accounts of accounting.

In the first option, production accounts are debited for the actual costs, and all expenses are credited to the “Main production” account. At the end of the month, finished products and work in progress are written off in credit. Deviations that remain in the "Main production" account are written off to the "Profit and Loss" account.

In the second option, deviations from the norms are looked at in the accounts "Materials", "Salary", "Indirect costs". Therefore, only standard costs are reflected in the Main Production account. Deviations are written off to the financial result.

In the third example, the combination of the first and second is used - accounting is carried out according to standard and actual costs.

The "standard-cost" system provides information on the expected costs of production and sale of products. It allows you to set a price based on a pre-calculated unit cost of products and services. The statement of income and expenses is prepared with the allocation of deviations from the standards and the reasons for their occurrence. (V.E. Kerimov, 2010)

There is also a cost management system - "Direct Cost".

"Direct-cost" - a method of cost accounting, according to which only direct costs should be included in the cost price. (A.D. Sheremet, 2010)

In this system, all costs for the reporting period and overhead costs are divided into variable and fixed costs. However, the cost of industrial products of the enterprise is planned and taken into account only in terms of variable costs.

Fixed costs are collected on the account "Main production" and written off to the debit of the account of financial results.

Under this system, the income statement is characterized by marginal income and operating profit.

The advantage of the direct-cost system is the simplicity of costing, since there is no need to allocate fixed costs. It makes it possible to determine the lower limit of the price of products, forecasting the cost in case of changes in the business activity of the enterprise, determining the financial strength and the maximum volume of production and sales of the enterprise.

However, due to the fact that fixed costs are not taken into account, the Direct Cost system does not give the full cost of the product. And there is still the difficulty of separating costs into fixed and variable.

Chapter 2. Cost analysis of SAF-Service LLC

1.1 Characteristics of the enterprise LLC "SAF-Service"

Enterprise "SAF-Service" is a limited liability company. The legal address of the enterprise in the city of Perm. Date of foundation - October 25, 2006.

The Company has a separate property, an independent balance sheet, a bank account, a round seal containing the full name of the Company and an indication of its location, forms, company name and other means of individualization.

The Company is a legal entity and builds its activities on the basis of the Charter and the current legislation of the Russian Federation.

The main activity of the company is the activity of agents in the wholesale trade of chemicals.

The main purpose of the creation of LLC "SAF-Service" is the implementation of commercial activities for profit.

The staffing table of SAF-Service LLC has five point twenty-five hundredths of staff positions:

1. Director

2. Chief accountant

3. Head of Logistics Department (MTO)

5. Accountant

6. Safety Engineer

An employment contract is concluded with each employee of the organization in accordance with the Labor Code of the Russian Federation, which contains the main rights and obligations of the parties, the term of the employment contract, salary, working and rest conditions, conditions for granting vacation, work schedule.

Organizational structure of SAF-Service LLC

The management of the enterprise is in the hands of the director. He supervises the activities of all employees. The chief accountant reports directly to the director, and with the help of an accountant subordinate to him, is engaged in document management, cash flow and reporting. The head of the logistics department is responsible for the purchase and sale of products. The lawyer monitors contracts and annexes to them. The labor protection engineer is responsible for advising employees on labor protection and fire safety. The problem of the enterprise is that, due to its small size, the purchase and sale of products is only in the hands of the head of the logistics department. Often, customers do not have a clear plan for the necessary goods in the future, and there is no way to draw up a procurement plan.

At SAF-Service LLC, the processing of accounting information is automated. Conducted on the basis of the software "1-C Enterprise 8.1", from the collection of primary accounting data to the receipt of financial statements. In accordance with the accounting policy, the enterprise uses a journal-order form of accounting with the use of a software product.

The company does not sell its goods directly from the warehouse. When buying products, their further resale is carried out immediately and sent to the buyer's warehouse.

Delivery of goods is carried out by road using vehicles, both enterprises and suppliers. Suppliers are mostly permanent, as SAF-Service LLC tries to keep in touch with trusted people.

The main points for choosing suppliers:

Geographic - the closer the supplier is to the buyer, the greater the advantages in terms of time and payment for delivery;

Partnership - the possibility of discounts and shipments on credit for regular customers.

Delivery time depends on the term of payment and on the agreement between the supplier and the buyer. Typically, an enterprise purchases as many goods as they expect to use in the near future.

The pricing policy at the enterprise is set on the basis of the “average costs plus profit” method, as well as on the basis of current prices. The average cost spit profit method is the simplest and most common. The accrual of the "surcharge" on the cost of the purchased goods is its principle of operation. The value of this "surcharge" can either be standard for each type of product, or vary significantly depending on the type of product, sales volumes, expenses for it, and so on. However, this method does not provide a complete assessment of demand and competition, and accordingly set the optimal price.

This method is very common, because despite studying the demand of buyers and the prices of competitors, sellers know the costs better.

Experienced economists know that by applying a different method of allocating overhead costs (OCR), you can get different cost prices for the same product. If the task is to adjust the cost of certain types of products (increase or decrease) in order to optimize the tax and marketing policies, the company can change the accounting policy for the distribution of overhead costs.

Methods of distribution of ODA

General production costs refer to the so-called indirect costs, that is, those that are attributed to the object of costing by distribution in accordance with the methodology and distribution base adopted by the enterprise.

For management purposes, it is important to regularly (monthly) monitor the share of overhead costs in the structure of production costs and determine the factors that increase them. General production costs are reflected in special statements. This allows you to analyze the types of costs, compare actual costs with planned ones, with the level of the previous year.

Note!

ODA distribution methods provide for the distribution of overhead costs, first by production and non-production (auxiliary and service) units, and then by type of product.

Stages of accounting and management work with overhead costs:

Collection, accumulation of information on costs by structural units - cost centers

Accumulated cost analysis, i.e. analysis by item of expenditure prior to distribution

Direct distribution - attributing the costs incurred to a specific cost object:

allocation of costs to production and non-production (servicing) units according to the selected distribution factor;
the costs of service shops and sections are distributed among production shops, taking into account the volume of services (products) consumed by the main shops;
the total overhead costs of the main production shops are distributed by type of product, according to orders made in this shop

Analysis of the level of costs that influenced the factors on the level of ODA of each workshop after distribution, comparison with standards, budgets, the same periods of the last year, analysis of the cost of production by structure - by workshops, cost elements

Identification of reserves for cost reduction for each group - division, products

Report to the management, assessment of previously carried out measures to optimize costs

3 methods for distributing the costs of non-production (auxiliary) workshops and sections between production:

Direct distribution method.
Sequential distribution method.
Mutual distribution method.

Direct distribution method applies if non-production units do not provide services to each other. The costs for each service department are charged directly to the production sites. Costs are distributed in proportion to the selected allocation base.

Serial distribution method used if non-production units provide services to each other unilaterally. The general principle of cost allocation is as follows:

costs are determined for each non-production unit;
the distribution base is selected (for example, for a boiler house - heat consumption in Gcal);
the costs of non-production units are distributed among the production units:

the costs of a non-production division that provides services to other non-production divisions unilaterally are distributed among them in proportion to the selected distribution base and after that, they are not taken into account in the further distribution process;
the remaining costs of non-manufacturing units are allocated to the main operating units, with the production unit that consumes most of the services of the non-manufacturing unit pro rata attributable to most of that unit's costs.

Mutual Distribution Method is used if there are two-way mutual relations between non-production units. The distribution of costs is carried out in stages:

the distribution base is selected (for example, material costs);
ratios between the segments involved in the distribution of costs are calculated;
the costs of non-production units are calculated, adjusted for bilateral consumption of services;
adjusted costs are allocated to responsibility centers

General production costs are always allocated based on the selected distribution base.

Note!

The distribution base of overhead costs is an indicator that most accurately links overhead costs with the volume of finished products.

The following indicators are often used as the distribution base: man-hours worked, hourly tariff rates, the amount of accrued wages of the main production workers, the number of machine hours, the duration of the process, the area of \u200b\u200bthe room, heat consumption, etc.

If the wages of production workers occupy a significant share in production costs, it is advisable to use them as a distribution base.

Note!

When choosing a distribution base, one should take into account the economic meaning of the factor, be guided by industry guidelines for accounting, planning and calculating the cost of production, and take into account the specifics of production activities. The ODA distribution base is an element of the company's accounting policy; it remains unchanged for a long time, so it is important to reasonably approach its choice.

In practice, ODA allocation often faces the following problems:

the connection of certain costs with a specific product, order is lost;
individual costs are not visualized in the cost structure;
“boiler methods” are widely used.

And these problems are often not solved, but masked. The first way to disguise - allocation from the composition of general production costs of individual costs that can be "turned" into direct. But individual direct costs are still allocated to products or orders in proportion to the indicators, which is essentially the same distribution.

The second way of "non-solving" - cost localization. Costs can become direct to their location, for example, cleaning a sorting and packaging shop has become a direct shop cost if the cleaners of the production premises were transferred from the cleaning service to the shop staff. In this case, the salary of the cleaners is a direct (own) cost for the sorting and packing shop, but indirect for the products produced by the shop.

Most enterprises, especially those with mass production, continue to calculate the cost of production and, in particular, general production costs. boiler method: collected costs for each workshop, and then distributed to the entire volume of manufactured products. As a result, they have an indicator that does not allow understanding and evaluating how a particular workshop worked, what costs were included in the cost of a particular order or product, who and for what part of the ODA is responsible.

But boiler distribution methods do not provide guidance on cost analytics and do not allow control and management of overhead costs.

There is a need for such a methodology that will ensure transparency and controllability of the distribution of ODA, will allow reasonably and accurately attributing them to manufactured products (orders).

organizational structure

The economist who distributes ODA must know the enterprise's technological processes, production indicators, the level of direct costs for products, the volume of work of each workshop and the organizational structure. This will make it possible to develop an optimal ODA distribution methodology, with the help of which it will be possible to determine the total costs of each unit and obtain the exact cost of production.

How to do this, consider the example of the plant for the production of ceramic bricks LLC "Stenovaya Keramika". Its organizational structure (production part) is shown in fig. one.

Rice. one. Plant organizational structure

Let's analyze industrial relations:

the quality control department of mass procurement controls the quality of products only of the mass procurement workshop, therefore, all the costs of this service should be attributed to it;
adjustment and repair section No. 1 also performs work only for the mass procurement workshop, therefore it is advisable to attribute all the costs of this section to the mass procurement workshop;
adjustment and repair section No. 2 performs repair and adjustment of equipment for the molding and drying shops, respectively, all costs of this section should be attributed to two main production shops in accordance with the volume of work performed at each of them;
the QCD service of the finished products at the exit - in the sorting and packaging shop - checks not only the quality of the packaging, but also the quality of the products themselves, which were manufactured in all previous shops. On the one hand, it is logical to distribute the costs of this service among all previous workshops, on the other hand, the specifics of the workshop - product sorting, therefore it is advisable to attribute the costs of the quality control department of finished products to the cost of this stage of work. How exactly to proceed is fixed in the accounting policy of the enterprise. Wall Ceramics Ltd. adopted the second option;
the automated production control service ensures the functioning of the automated equipment of the main production, therefore, the costs of this service should be distributed to the main production shops;
electrical shop, repair and mechanical shop, steam-power facilities, transport shop, storage facilities, cleaning service of industrial premises perform work for shops of both the main production and auxiliary.

When developing a methodology for the distribution of ODA, it should be taken into account that products are produced not only by the main production. Auxiliary production, in addition to ensuring the functioning of the main one (adjustment, repair, provision of materials, cleaning), also manufactures products, has scopes of work not related to the main activity, for example: a transport shop provides services to third-party companies, a mechanical repair shop manufactures spare parts, an electrical shop assembles a new production line, etc.

But before allocating costs, they must be accumulated.

Accumulation of overhead costs

To obtain reliable information about the cost, you first need to put things in order in the primary accounting and develop a coding for items of overhead costs.

ODA are accounted for on account 25 "General production costs". To it, as a rule, sub-accounts are opened to account for the costs of general production for each workshop of the main and auxiliary industries. Analytical accounting of overhead costs are classified by item of expenditure. For example, the following costs will be accumulated for the sorting and packaging shop:

salaries of management personnel;
expenses for the repair of equipment and premises of the sorting and packaging shop;
depreciation of equipment (of this particular workshop);
delivery of packing workers to the enterprise, etc.

Accumulation - are these regular accounting entries ("Analytics of entries" form)? And we need analytics.

If ODA were taken into account only by accounts, for example, 25.1 “General production costs of the mass preparation shop” or 25.2 “General production costs of the molding shop”, then the enterprise’s economists would operate only with the total data on the ODA of each shop, it would not be possible to find out how much one item of expenditure takes on all shops together (for example, the total cost of labor protection for all departments, the cost of labor protection for the main and auxiliary industries).

To accumulate information about expense items, if the chart of accounts is organized by workshops, each primary document reflected in overhead costs must have analytics "Expense item". Then the economist can easily obtain the necessary data. Form " Posting Analytics' is transformed into the form ''.

An example of coding expense items:

026.01.25 - labor protection costs.

026 - code of the aggregated type of cost, in our case, labor protection (may be depreciation, repairs, medical examinations, etc.).

01 - main production (roasting shop).

02 - auxiliary production (will be indicated, for example, for the electrical shop).

25 - analytics (decoding), in this case - training and certification. The analytics in the cost of labor protection can be the cost item for overalls, personal protective equipment, laboratory studies of production factors, the cost of acquiring signal plates, equipping fire panels, maintaining the fire extinguishing system, recharging fire extinguishers, etc.

So, according to the data of the form "Analytics of overhead costs by cost items for February 2016" the cost of repair and maintenance of the equipment of the main production amounted to 267,304 rubles. (15.19%), auxiliary - 163,477 rubles. (9.29%).

In addition, if one type of equipment is present in both types of production, in several workshops, for example, overhead cranes, then sorting by column 3 of the form will provide data on the amount of costs for certain types of equipment for all workshops at once.

« Analytics of overhead costs by cost items» allows an economist not only to see a list of expenditure items incurred in the current period, the amount of costs, but also immediately, even before distribution, to analyze: find out the share (both within the cost element and in general for general production costs) of each item, how much it has changed compared to the previous month or other period taken for comparison.

So, if a certain article in total terms is significantly more / less than the previous period, structural changes have occurred, an economist can see what changes have occurred in production plans, in repair plans, raise the primary sources of postings and work through these primary documents again, check for errors, whether costs are correctly identified.

For your information

Identification of individual entries with codes of expense items will not be difficult, but in practice at manufacturing enterprises it is necessary to build a system of who and how will correlate certain ODA with a specific workshop and a specific expense item (Fig. 2).

Rice. 2. Responsibility of accountants for the accumulation of ODA
Click on the image to enlarge it

With strict budgeting aimed at reducing all types of costs, a situation may arise when the management of one workshop will insist that 10 thousand rubles. according to act No. 115 dated February 22, 2016, not its costs. To avoid it, the accountant, when processing incoming primary documents (invoices, acts of completion, defective statements, etc.), before making entries related to the debit of account 25 (for any subaccount), must first send documents to an economist. The economist writes out a “stub” for this primary document / group of documents, where it indicates which expense item code to put down for the accountant when posting the primary document in the accounting program. Thus, all expenses are accumulated on the accounting accounts by department, in the context of expense items, and most importantly, they are worked out by both the accountant and the economist.

It is often at this stage that a managerial mistake is made: accountants conduct documents as they see fit, and then the economist then “rakes up” the whole database, assigning codes. And if it finds inconsistencies, it is necessary to change the postings to correctly allocate costs. Then conflicts arise - then the accountant does not want to change the posting, considering it justified, then the reporting period is already closed. As a result - distortions in the cost price. Therefore, we recommend following the proposed system.

Further, any financial specialist will be able to generate any number of different output forms in different sorting and selection, the main thing is to correctly develop codes. Codification must be approved by the management of the enterprise.

At this stage, problems may arise. The first is a weak documentation discipline: untimely execution of primary documents, on the basis of which costs are written off; untimely delivery of production reports for processing to the accounting department, planning and economic department (hereinafter - PEO); incorrect indication (absence) of order/product codes in primary documents.

The second is the lack of proper accounting of material assets located directly in the production shops. It leads to:

inaccurate quantitative indicators of the production actually released by the workshop for the period of production, concealment of defects;
overstatement of the level of work in progress;
discrepancy between the actual availability of equipment and tools in the workshops and accounting; the movement of objects is also not reflected; the equipment is not assigned to its actual user; hence, depreciation and repair costs are "planted" in the wrong workshop, and as a result, distortions in the cost structure.

Important

The responsibility of each accountant for the costs with which he works when making entries must be documented.

It is easier to eliminate an error, a discrepancy at the stage of reflecting a business transaction than working later with an extensive database, especially since the accountant "passes through" each document, contacts the performer (shop foreman, labor protection engineer, head of the Quality Control Department), who brought the invoice , act, payroll order, and therefore can immediately receive the necessary clarifications.

If the sub-accounts for account 25 “General production costs” are built at the enterprise by types of expenses, for example 25.1 - repair and maintenance of buildings and structures, 25.2 - delivery of workers to the enterprise, then the structural unit - the cost center - acts as an analytic.

It is important to stick to one chosen technique; It should not be that today by analytics we mean one thing, tomorrow - another.

It is not the economist who decides which version of Posting Analytics to use - it is limited by such factors:

the current chart of accounts for ODA and for the enterprise as a whole;
how suitable it is for analytics;
whether the chief accountant makes contact if it is necessary to make changes to the chart of accounts;
software used;
the cost of software development costs according to one of the options.

Whatever advanced and reasonable ODA distribution methodology an economist develops, it will not be possible to implement it without the participation and positive decision of the chief accountant.

One of the important areas of management accounting is the accounting of production costs and determining its cost. Cost calculation is necessary for:

Determination of prices for products;
determining the profitability of production and certain types of products;
Implementation of intra-economic cost accounting;
· identification of reserves to reduce the cost of production;
· calculation of economic efficiency of introduction of new equipment, technology and organizational and technical measures;
· substantiation of the decision on the production of new types of products and the removal of obsolete products from production, etc.

The cost of production includes various types of costs. In this regard, a clear definition of the composition of the costs that form it is of great importance. Kerimov V.E. Cost accounting, calculation and budgeting in certain sectors of the manufacturing sector. - M.: Dashkov and Co., 2005 (p. 19) So, in relation to the cost of production, the costs are divided into those included and not included in the cost of production. The costs included in the cost of production include the cost of work in progress at the beginning of the period and those costs of the reporting period that are directly related to manufactured products. The cost of work in progress at the end of the reporting period, costs that are not directly related to the production of output products and part of the costs of future periods are not included in the cost price.

According to the economic role in the production process, costs are divided into basic and overhead. The main costs are those directly related to the technological process of production: the cost of raw materials, basic and auxiliary materials, the wages of production workers, social contributions, and other overhead costs are formed in connection with the organization, maintenance of production and management. They consist of general production and general business expenses. Kondrakov N.P., Ivanova M.A. Accounting management accounting. - M.: INFRA-M, 2006 (p. 34)

General production costs represent general shop expenses for the organization, maintenance and management of production. They are accumulated on account 25 "General production costs". General business expenses are incurred in order to manage production. They are not directly related to the production activities of the organization and are accounted for on account 26 "General business expenses". Bakhrushina M.A. Accounting management accounting. - M.: OMEGA-L, 2002 (p. 49)

According to the economic content, expenses are grouped by cost elements and by costing items. Cost elements include the following:

o material costs;
o labor costs;
o contributions for social needs;
o depreciation;
o other costs

Data on cost elements are necessary when developing business plans, determining the volume of purchases of material resources, the wage fund and depreciation deductions, organizing cost control, calculating resource efficiency indicators, etc.

In management accounting, costs are grouped by costing items. Depending on the sector of the economy, these articles may differ, but at present it is recommended to use the following typical grouping of expenses by calculation items:

1. raw materials and materials;
2. returnable waste;
3. purchased products, semi-finished products and production services of third-party enterprises and organizations;
4. fuel and energy for technological purposes;
5. basic wages of production workers;
6. deductions for social needs;
7. expenses for the preparation and development of production
8. overhead costs;
9. general business expenses;
10. losses from marriage;
11. other production expenses;
12. selling expenses (sales expenses)

The total of the first eleven items is the cost of production, and the total of all items is the total cost of goods sold.

According to the method of inclusion in the cost price, costs are divided into direct and indirect. Direct costs are directly related to the production of a certain type of product and can be directly and directly attributed to its cost. Such costs include raw materials and basic materials, the wages of production workers, losses from marriage, etc. Indirect costs cannot be directly attributed to the cost of certain types of products and are distributed indirectly (conditionally). This group of costs includes general production and general business expenses, part of the costs of selling and some others.

In modern conditions of management in commercial organizations, the issues of distribution of indirect costs between the types of products (works, services) they produce are of particular relevance. As a rule, they are distributed first by types (directions) of activity, and then (within each type of activity) - by types of products. The accuracy of determining the cost of individual production lines and types of products depends on how rationally they are distributed. The latter, in turn, is of great importance for the company's pricing policy and its structural policy. Grishchenko O.V. Methods of allocation of indirect costs. "Management Accounting"

There are three main methods for allocating indirect costs among production units:

§ direct cost allocation method;
§ step-by-step (sequential) method;
§ method of mutual distribution of costs (two-way)

The method of direct distribution of indirect costs is the simplest: the costs of each service unit are charged directly to the production units, bypassing other service units. It is used in cases where non-production responsibility centers do not provide services to each other.

The advantage of this method is its simplicity and ease of use. Its main drawback is that it leads to serious distortions in determining the real cost of various types of products.

The step-by-step method of allocating production indirect costs is used in cases where non-productive units provide services to each other unilaterally. For example, the services of the repair shop are unilaterally consumed by the finished product warehouse and the main production shop, and the administration services are consumed by the main shop, the finished product warehouse and repair shops. The process of distribution of non-production costs between production units is carried out in stages.

Step 1 Determination of costs by departments. All unit costs are taken into account.
Step 2 The definition of the base unit, i.e. a unit of volume of services provided by an ancillary unit that can be used to easily determine the consumption of these services by other units. For example, for a repair shop - this is the amount of time for repairs, for a transport shop - the mileage of vehicles (km), storage facilities - area (m 2), etc.
Step 3 Distribution of costs. Executed based on the selected distribution base. The general order of distribution is from non-production units to production ones. As a result of the distribution, all costs of non-production departments must be assigned to production cost centers. After allocating the costs of one support unit, it is no longer taken into account and is further excluded from the stepwise allocation process, i.e. the costs of other support units are not allocated to his account.

The step-by-step method of allocating production indirect costs is more time-consuming, however, compared to the previous method, it gives a more accurate picture of the cost of individual types of products.

The method of mutual distribution of costs is called two-way, which reflects the essence of production relations between responsibility centers. It is used in cases where between non-production units there is an exchange of intra-company services. However, manually without using a software product, it can only be applied if there are two non-production departments. In this case, the distribution of indirect costs can be carried out in the following sequence:

1. we determine the indicator that acts as the distribution base, and, based on it, we calculate the ratio between the units involved in the distribution of costs;
2. we calculate the costs of non-production units, adjusted for the two-sided consumption of services (for this, a system of equations is compiled);
3. The adjusted costs are allocated to the responsibility centers.

The next step after the distribution of indirect costs is to assign them to specific orders and types of products. The most acceptable base for allocating indirect costs to orders and types of products is the base, which not only contributes to the calculation of the cost, but is also a factor in the allocation of overhead costs. The factor chosen on this basis should accurately reflect the function of indirect costs. A specific factor has a different effect on certain types of indirect costs, so an enterprise can choose different bases for their distribution.

The choice of one or another distribution base is determined by the functional specifics of the enterprise (when using a general factory distribution base) or its individual services (when taking into account production indirect costs at the level of departments). In this case, the main criterion for choosing a distribution base is a combination of different types of resources in one or another technological line.

The main resources used in the production of products are inventories (raw materials, materials, components), fixed assets (in terms of depreciation), labor resources (in terms of wages). Thus, the technological processes of individual divisions, workshops of the enterprise differ in the degree of labor intensity, capital intensity or material intensity.

If the activity of the unit is labor-intensive (a large share of manual labor), then the general production costs of the workshop of this unit should be distributed by type of product, taking as a basis the indicators associated with the consumption of labor resources. As a basis for the distribution of production indirect costs of this unit, you can use:

o actual labor costs;
o standard (planned) direct labor costs;
o the number of personnel involved in a particular technological process.

If the activity of the division is capital intensive, then the production indirect costs of this division can be distributed by type of product, taking as a basis the indicators associated with the use of fixed assets.

Here, depreciation deductions by type of product, planned (normative) hours of equipment operation, actual hours of equipment operation, residual value of fixed assets involved in a particular technological process can be used as a base for the distribution of production indirect costs.

If the activity of the unit is material-intensive (the costs added to the cost of production in this unit are for the most part the costs of raw materials and materials), then the distribution base can be taken:

* actually direct costs of raw materials and materials;
* planned (normative) direct costs of raw materials and materials.

If it is not possible to clearly determine whether the activity of the unit is labour-intensive, capital-intensive or material-intensive, then combined allocation bases calculated on the basis of two or more types of resources can be used:

* full direct material costs (current material costs plus depreciation) - with a large proportion of the raw materials used, materials and fixed assets;
* added value (depreciation plus direct labor costs) - with a large proportion of labor resources and capital (fixed assets);
* labor costs plus current material costs - with a large proportion of raw materials, materials and manual labor;
* full direct costs - in the absence of a priority of any type of resource.

Distribution bases can also exist for the functional services of the enterprise (control apparatus). In this case, they characterize, as a rule, the quantitative aspect of one of the main functions performed by the service of the administrative apparatus.

So, the main distribution bases can be:

* for the dispatching service -- ton-kilometers of transported finished products;
* for warehousing - standard costs per unit of storage per day, multiplied by the average balance in the warehouse, or cubic meters of storage of a unit of finished products;
* for the shipping department -- the number of contracts for the shipment of finished products.

Significant current costs may be required to calculate the most adequate allocation base for production overheads. Therefore, it is sometimes advisable to use other, additional distribution bases, which, although they are less adequate, are less laborious.

Additional distribution bases, as a rule, are those financial indicators that are automatically calculated in the course of the economic activity of the enterprise. Their calculation does not require any additional costs.

Such indicators include output volume, sales volume, cost of sales, cost of output, cost of purchasing raw materials and materials, marginal income, average headcount, etc.

Most often, indicators of sales volume and cost (cost of sales, cost of production, cost of purchases of raw materials and materials) are used as additional bases for the distribution of production indirect costs. Sales volume is an additional distribution base for those units whose activities are aimed at sales promotion. This could be, for example, the marketing department or the sales department.

Cost of sales and cost of output can be used as an additional allocation base for those units whose activities cover a significant part of the financial cycle and (or) most types of manufactured products and technological processes. At the level of production departments of the enterprise, these are the assembly shop, the technical control department, the motor transport service, and at the level of management services, the financial and legal departments, and the information processing department. The cost of purchasing raw materials, materials and components is an additional distribution base for those units whose functions and useful action are aimed at "incoming" financial and material flows (dispatching service, logistics service).

It should be noted that the accurate determination of the cost of production and sales for individual types of products based on the choice of the correct approach to the distribution of production indirect costs allows you to obtain reliable information about how profitable the production of a particular product is for the enterprise, what is its profitability and what level of selling price is the most justified. Neglecting the implementation of effective systems for the distribution of production indirect costs often leads to the fact that there are significant disproportions in the production program, sales structure and pricing policy of the enterprise, and this, in turn, entails a deterioration in the financial results of the enterprise.

cost of production costing

The organizational structure of the clinic, which provides paid medical services, is represented by two production departments (therapy department and the surgery department) and three non-production services (service departments): administration, laundry, canteen. In table. 1 clinic costs for the reporting period are identified with cost centers. (In our example, they coincide with the clinic's responsibility centers).

Table 1

Costs of clinic responsibility centers, c.u.

In this case, the first two stages have already been completed. It is necessary to choose a method for further redistribution of costs and perform the appropriate calculations.

Direct cost allocation method

The share of revenue was chosen as the distribution base. At the same time, the share of the surgical department (surgery) in the 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.

table 2

simple distribution method

Stepwise cost allocation method

The administration of the clinic employs 10 people, in the laundry and dining room - 5 people each, in the surgical department - 20 people, in therapy - 30 people. The results of subsequent calculations are presented in table. 3.

Step 1. The costs of the administrative department are shared. The distribution base is the number of employees. Based on the number of employees in the responsibility centers, we get a ratio of 10:5:5:20:30, or 2:1:1:4:6.

Administration costs (900 USD) are distributed among the other responsibility centers in the ratio 1:1:4:6 (12 parts in total). We divide the administration costs (900 USD) into 12 parts: 900:12 = 75 USD Then 75 c.u. multiply by the parts received for each unit and add to the costs. We obtain an intermediate calculation, the results of which are presented in gr. 4 tables.

Table 3

The results of the distribution of costs of non-production segments of the clinic
stepwise distribution method, c.u.

* The amounts in parentheses indicate the amounts to be distributed.

Step 2. Laundry costs are shared. The base unit in this case is kilograms of washed laundry. The needs of the dining room - 20 kg, surgery - 60 kg, therapy - 40 kg of linen. We get a ratio of 20:60:40, or 1:3:2 (6 parts in total). We divide the laundry costs (300 USD) into 6 parts: 300:6 = 50 USD, which we then multiply by the received parts separately for each department and add to the costs. We obtain an intermediate calculation, the results of which are presented in gr. 6 tables.

Step 3. Dining costs are shared. She needs to serve 100 patients in surgery, 200 patients in therapy. We get a ratio of 100:200, or 1:2 (3 parts in total). Divide the costs of the canteen (600 USD) into 3 parts: 600:3 = 200 USD, multiply them by the received parts for each responsibility center (column 7) and add them to the costs. We get the final distribution data (column 8 of the table).

Double-sided or mutual distribution method.

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 (canteen) = 700 USD.

Thus, the administration consumes the services of the utility block and vice versa.

Calculations are performed in the following sequence:

1) we determine the indicator that acts as the distribution base (we will choose direct costs as the distribution base);

2) based on the base, we calculate the ratio between the segments involved in the distribution of costs (Table 4).

Table 4

Calculation of the ratio between segments

3) we calculate the costs of non-production units, adjusted for the two-way consumption of services. For this, the following system of equations is compiled:

(A \u003d 900 + 0.29X;

(X \u003d 700 + 0.242A,

where X is the adjusted costs of the utility block, c.u.;

A - adjusted administration costs, c.u.

We solve this system of equations using the substitution method:

A \u003d 900 + 0.29 (700 + 0.242A);

A \u003d 900 + 203 + 0.07A;

A = 1186 c.u.

Then X = 700 + 0.242 x 1186 = $987

4) we distribute the adjusted costs among the responsibility centers (Table 5).

Table 5

The results of the distribution of costs of non-production segments of the clinic
bilateral method, c.u.

Example. Cost allocation methods: direct, incremental and two-way

The organizational structure of a clinic providing paid medical services is represented by two production units (therapy department and the surgery department) and three non-production services (service units): administration, laundry, canteen. In table. 1 clinic costs for the reporting period are identified with cost centers. (In our example, they coincide with the clinic's responsibility centers).

Table 1

Costs of clinic responsibility centers, c.u.

In this case, the first two stages have already been completed. It is necessary to choose a method for further redistribution of costs and perform the appropriate calculations.

Direct cost allocation method

table 2

The results of the distribution of costs of non-production segments of the clinic using the simple distribution method

Stepwise cost allocation method

The administration of the clinic employs 10 people, the laundry and the dining room - 5 people each, the surgical department - 20 people, and the therapy - 30 people. The results of subsequent calculations are presented in table. 3.

Administration costs (900 USD) are distributed among the remaining responsibility centers in a ratio of 1: 1: 4: 6 (total parts 12). We divide the administration costs (900 USD) into 12 parts: 900:12 = 75 USD Further 75 c.u. multiply by the parts received for each division and add to the costs. We obtain an intermediate calculation, the results of which are presented in gr.
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4 tables.

Table 3

The results of the distribution of costs of non-production segments of the clinic by the method of stepwise distribution, c.u.

* In parentheses are the amounts to be distributed.

Step 2. Laundry costs are shared. The base unit in this case is kilograms of washed laundry. The needs of the dining room - 20 kg, surgery - 60 kg, therapy - 40 kg of linen. We get a ratio of 20:60:40, or 1:3:2 (there are 6 parts in total). We divide the laundry costs ($ 300) into 6 parts: 300: 6 \u003d $ 50, which we then multiply by the received parts separately for each division and add to the costs. We obtain an intermediate calculation, the results of which are presented in gr.
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6 tables.

Step 3. Dining costs are shared. It is extremely important for her to serve 100 patients in surgery and 200 patients in therapy. We get a ratio of 100:200, or 1:2 (of all parts 3). Divide the costs of the canteen (600 USD) into 3 parts: 600:3 = 200 USD, multiply them by the received parts for each responsibility center (column
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7) and add to the costs. We get the final distribution data (column
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8 tables).

Two-way or mutual distribution method.

In our example, we will conditionally combine the laundry and the dining room into one unit - the household unit, the costs of which will be 225 (laundry) + 475 (dining room) = 700 c.u.

Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, the administration consumes the services of the hozblok and vice versa.

Calculations are performed in the following sequence:

1) we determine the indicator that acts as the distribution base (we will choose direct costs as the distribution base);

2) based on the base, we calculate the ratio between the segments involved in the distribution of costs (Table 4).

Table 4

Calculation of the ratio between segments

3) we calculate the costs of non-production units, adjusted for the bilateral consumption of services. For this, the following system of equations is compiled:

(A \u003d 900 + 0.29X;

(X \u003d 700 + 0.242A,

where X is the adjusted costs of the utility block, c.u.;

A - adjusted administration costs, c.u.

We solve this system of equations using the substitution method:

A \u003d 900 + 0.29 (700 + 0.242A);

A \u003d 900 + 203 + 0.07A;

A = 1186 c.u.

Then X = 700 + 0.242 x 1186 = $987

4) we distribute the adjusted costs among the responsibility centers (Table 5).

Table 5

The results of the distribution of costs of non-production segments of the clinic by a two-way method, c.u.

Example. Cost allocation methods: direct, step-by-step and bilateral - concept and types. Classification and features of the category "Example. Cost allocation methods: direct, step-by-step and bilateral" 2017, 2018.