Main production cost accounting and enterprise plan indicators

Accounting for costs of main production, as well as auxiliary, involves the grouping of key indicators in the following categories:

• By its kinds - the basic, auxiliary, serving;
• By sources of formation - arising directly in the course of production, created in the process of managing the enterprise;
• On other grounds (direct, productive, invoices and others).

The organization of accounting is conditioned by the principles:

• The immutability of the established methodology;
• Completeness of information on all transactions;
• Correct correlation of costs by period;
• Differentiation of current costs and capital investments;
• Normalization of the cost structure.

The main production is understood as the production activity of an enterprise or a company, as a result of which the goods are produced, the services for which this enterprise was created. All costs for the main production are carried out on the basis of the calculation account 20, which is called - "Main Production".

As the calculation of the costs of the main production assumes, the debit of this account summarizes the costs of all funds, and for the credit section they are to be reported as written-off based on the value of the full cost of goods already manufactured and sold. More specifically: the debit of this account reflects the costs incurred by the company directly with the organization and implementation of production activities. It also reflects the accounting of costs of auxiliary production: debit- account 20, credit-account 23. In some cases sub-accounts are opened in addition to the specified account to reflect non-core and non-standard cost indicators.

Traditionally, accounting for the costs of the main production of account 20 assumes a classified reflection of the indicators by types of manufactured goods, by type of cost, by the allocation of costs between the structural elements of the company.

The list of items reflected, which contain the accounting of costs of the main production, is regulated by methodological guidelines for its organization and management, which are issued by the relevant profile agencies. They, as a rule, assume such articles (positions):

1. Raw materials and raw semi-finished products.
2. Subtractable waste.
3. Purchased semi-finished products and components.
4. Fuel and energy.
5. Production services provided by third parties and companies.
6. Salary.
7. Social payments and deductions.
8. Taxes.
9. Preparatory production costs.
10. Expenses incurred in connection with the maintenance of production equipment.
11. General industrial and general economic expenses of the enterprise.
12. Expenses incurred in connection with the production of defective products.
13. Costs associated with the sale of products.

As a rule, accounting of costs of the main production is made by the method of calculating the cost, which involves calculating the total cost and determining the cost of a unit of produced goods.

All accounting data are the most important parameter for developing strategy and tactics of enterprise development. Whatever the type of economy, planning elements in any enterprise are always available. Therefore, the main indicators of the production plan for an enterprise or a company can, and even should, include such sections of indicators as:

• Nomenclature - the composition of commodity output according to its parametric properties (varieties, purpose, types, sizes, etc.);
• The renewal ratio is a quantity whose value characterizes the ratio of new product samples to old ones.

In the plans there is a classification of indicators for basic and operational. The first group includes, for example, sales volumes, product quality, profit size, sustainability policy, share price and others.

Operational includes the indicators of the policy of reducing costs, added value, turnover ratio, investment. Current planning includes indicators of the number of products in units, stocks of materials, financial indicators, the payment fund, its average level and others.