Project Proposal Writing For Short Essays

Michael bierut on your feet

One of the most important problems of management accounting is calculation of product cost. Product cost is the costs of its production and realization expressed in a monetary form. Product cost (works, it consists to an usl of the enterprise of the expenses connected with use in the course of production (works, to an usl of natural resources, raw materials, materials, fuel, energy, fixed assets, a manpower, and also other costs of its production and realization.

Application of the carried rate of overhead costs is necessary at seasonal fluctuations of business activity, then indicators of specific prime cost can remove the points close on values. If to apply the actual sizes of overhead costs, owing to seasonal nature of business activity monthly indicators of specific prime cost can turn out distorted.

Standards on quality are checked at the level of production divisions; for example, technical control is carried out at the level of production divisions directly on the line during production;

One of the main indicators of work of the enterprise is product cost. Calculation of prime cost of unit of separate types of production, works or services and all products is called as accounting. Distinguish planned, budget, standard and reporting (or actual) accounting.

According to this method the work in progress is supposed to be finished first of all. Equivalent units in the FIFO method are defined as follows: Eed=ezp+nkp*sz-Nnp*sz, where Eed – equivalent units, Ezp – units of complete production, Nkp – a work in progress for the end of the period, NNP – a work in progress for the beginning of the period, Sz – completeness degree as a percentage.

The expenses forming product cost (works, to an usl, are grouped according to their economic contents in the following elements: material inputs (minus cost returnable withdrawal; labor costs; assignments on social needs; depreciation of fixed assets; other expenses.

Equivalent units in a method of the average weighed are defined as follows: Ezp+sz*nkp=eed, where Eed – equivalent units, Ezp – units of complete production, Nkp – a work in progress for the end of the period, Sz – completeness degree as a percentage.

Definition of the full considered expenses and calculation of specific prime cost counting on an equivalent unit. At this stage the full expenses carried on production division in the reporting period are summarized. Specific prime cost counting on an equivalent will make:

Reporting or actual accounting make according to the accounting report on the actual costs of production and reflect actual cost of the made production or the performed works. Include in actual cost of production also not planned non-productive expenses.

Capacity is an ability to make production during the set time period. Its top limit is caused by existence of rooms, the equipment, a manpower, materials and the capital. Capacity can be expressed in units of production, monetary units, labor costs etc. There are four main production capacity levels:

Expenses on operation and content of production (charges, depreciation and maintenance of the production and hoisting-and-transport equipment; shop transport; workplaces; repayment of cost of tools and adaptations, including costs of their restoration; costs of intra factory movement of freights by the attracted transport);

For poprotsessny accounting of expenses the so-called summary sheet of costs of production is used. In it are generalized both full expenses, and the indicators of specific prime cost carried on this or that division and distribution of full expenses between stocks of a work in progress and the units finished and transferred further (or production stocks) production contains.

The standard method of the accounting of costs of production or calculations of product cost applies, as a rule, in branches of manufacturing industry with a mass and mass production of various and difficult production.

At consecutive movement each product is exposed to an identical series of operations. In the textile industry, for example, the factory usually has spinning shop and shop of coloring. The yarn from spinning shop comes to shop of coloring, and then on finished goods warehouse. The way of movement here of production is consecutive.