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Overheads. What the overhead costs consist of Overhead costs are recorded on the account

Accounting for overheads when determining the cost of goods manufactured is necessary for the following two purposes:

the first goal is determined by the requirements of financial accounting and is associated with the need to allocate production costs incurred over the period between cost of goods sold and the value of inventories. For the needs of financial accounting, it is not required to accurately determine the costs of a specific accounting object, it is enough to distinguish between the costs of the product and the costs for the period so that their values, reflected in the reporting of a given period, make it possible to demonstrate an acceptable level of profit for the company as a whole;
the second goal is to provide leaders of the organization with the information necessary to make management decisions. And here the level of approximation adopted in financial accounting turns out to be absolutely unacceptable, since it does not allow determining the profitability of individual products.

Unfortunately, in the practice of domestic and foreign companies, information generated in the financial accounting system is used to make decisions. Even the textbooks published in our country in recent years often offer outdated approaches to the allocation of overhead costs. The traditions that formed in the middle of the last century were probably quite consistent with the then existing industries with a limited range of related products and high shares of direct material costs and labor costs of production workers. The standard distribution base for this type of production organization was direct labor costs, expressed in natural units, or the amount of time worked by equipment1. Modern business has a completely different cost structure. There are not so many "classic" productions left, the leadership belongs to companies that are able to provide high added value, and, therefore, incur high overhead costs.

The diversification of product portfolios of companies leads not only to an expansion of the range of products produced, but also to noticeable difficulties in selecting a suitable indicator that would allow us to compare, say, products and services produced by one company. Due to fundamental differences (not only of a technological nature) between individual types of products, it has become impossible to distribute costs on the basis of man-hours or machine-hours.

All these features are difficult even for accountants working in the financial accounting system. For an accountant-analyst, whose task is to prepare information for making management decisions, recommendations "from textbooks" become simply useless.

When starting to resolve the issue of organizing overhead accounting in practice, several key issues of organizing cost accounting as a whole should be resolved.
1. It is primarily about the nomenclature of cost objects, cost centers and costing items.

Cost carriers in classical costing systems are final products (finished products, works, services), intermediate products and semi-finished products, individual parts, assemblies, product groups, orders or other costing objects. In simple terms, cost carriers are those units for which the cost is considered, whether it is a physical unit of the final product or the result of a product passing through a separate technological stage (redistribution).

A cost center is a spatially or functionally delimited area of activity of an organization in which resources are consumed, in connection with which costs arise, and whose managers are responsible for their value. The structural divisions of the organization are usually considered as cost centers. When organizing accounting by responsibility center, it is useful to correlate cost centers with responsibility centers, although this is not required.

Costing item - a type of cost, highlighted for accounting and analytical purposes in the process of attributing costs to different costing units within each specific area of accounting. A costing item can be single-item (for example, the cost of paying for downtime) or complex (the cost of training personnel). Cost items can look more or less aggregated depending on which direction of accounting we are interested in at the moment.

2. The second question to be understood is which cost centers correspond to production units, which to service units, and which to non-production units.

In production units, products go through various stages of the technological chain. For example, all the main workshops belong to the production units of the plant; in an audit firm, the production units are the departments of audit, consulting, evaluation, that is, everyone who directly works on clients' projects. Production of products is impossible without each of these divisions. At the same time, it is not necessary for each unit of each product name to pass through all production departments.

Auxiliary (service) divisions ensure the functioning of production, while not a single product passes directly through them during its technological cycle. The auxiliary services include heat and power, storage, repair, etc. services of the enterprise. In an audit firm, this will be an archive, an information technology department, etc.

Non-production units ensure the functioning of the organization as a whole, while they do not participate in the production of the product itself. Administrative, financial, social, etc. divisions of the enterprise are classified as non-productive.

3. Next, you should decide what accounting principles we will adhere to when forming the cost - by full or by variable costs. The solution to this issue will depend on the attribution of overhead costs to product costs or recurring costs.

In addition, the decision to introduce variable cost accounting will require the organization of cost sharing into variable and fixed costs in accounting registers, which will require additional efforts to separate variable components in conditionally variable cost items. Unfortunately, the accounting accounts used by Russian enterprises to account for indirect costs are completely inadequate for analytical work. In this issue, the advantages of a separate system for maintaining financial and management accounting are most clearly manifested.

Introduction

Chapter 1. The economic content of overhead costs and their importance in the management accounting system

1.1 Regulatory regulation of management accounting in terms of overhead costs

1.2 Definition and classification of overheads

1.3 The value of overheads in the management accounting system

1.4 Brief description of the enterprise LLC "Kolos"

Chapter 2. Accounting for overhead costs at the enterprise LLC "Kolos"

2.1 System of accounts of overhead costs and their reflection on the accounts

2.2 Procedure for the distribution of overhead costs

2.3 Internal reporting of overheads

Conclusion

List of used literature

INTRODUCTION

In the market economy, it became obvious that the most manageable from the standpoint of searching for savings, growth in profits and profitability at the enterprise that determined the program of production and sales, gradually become not basic, but overhead costs.

The direction of improving the activities of management accounting can serve as the creation of a unified accounting, budgeting and analysis of overhead costs.

Insufficiently adapted to market conditions methods of accounting and analysis of overhead costs adversely affect not only the current operation of the enterprise, but also lead to the adoption of incorrect strategic management decisions.

The results of studies by domestic and foreign experts indicate that overhead costs in most industries are constantly increasing both in absolute amount and in relation to the total cost of an economic entity. This is due to scientific and technological progress, the increasing complexity of management tasks and a corresponding increase in the number of management personnel, their qualifications, widespread use of computers, modern means of communication in management, increased requirements for the representativeness of offices, their equipment, etc. Under the new conditions, there is a conscious need for flexible administrative systems, a change in the methodological principles of management and its components (including approaches to the use of accounting information), tightening control over spending at the level of the organization's management, conducting analytical studies to optimize costs in this area.

This is the relevance of the course work, tk. management accounting of overhead costs is necessary for effective cost regulation, defining the areas of responsibility of managers, solving problems with identifying the most accurate indicators of the cost of production. And the more attention is paid to the creation of an optimal management accounting system for overhead costs, the more mobile the enterprise will become in market conditions and the more efficient the activity of the administrative apparatus.

The purpose of the work is to consider the accounting and distribution of overhead costs.

In accordance with the set goal, the following tasks are being solved:

1. Study of legal regulation of management accounting in terms of overhead costs;

2. Analysis of the classification of overhead costs;

3. Study of the order of distribution and the system of accounts of overhead costs;

4. Description of internal reporting

This coursework will be based on the example of a limited liability company "Kolos".

The course work consists of an introduction, two chapters, a conclusion, a list of used literature and relevant applications.

The first chapter consistently indicates those regulatory legal acts that regulate the procedure for maintaining management accounting in terms of overhead costs. Describes the classification of overheads. The value of overhead costs in the management accounting system is determined. And also a brief description of the enterprise is given on the basis of which this course work is written, i.e. LLC "Kolos".

The second chapter examines the procedure for the distribution of overhead costs, the way costs are reflected in the accounts and the internal reporting of Kolos LLC.

The course work is written using such regulatory documents as the Federal Law "On Accounting", as well as the textbook A.Yu. Sokolov, MA Vakhrushina, periodicals and on the basis of the information activities of Kolos LLC.

CHAPTER 1. The economic content of overhead costs and their importance in the management accounting system

1.1 Regulatory regulation of management accounting in terms of overhead costs

With the adoption in 1993 of the State program for the transition of the Russian Federation to the accounting system adopted in international practice, a number of normative documents have been developed that create the necessary prerequisites for the introduction of management accounting into the practice of Russian enterprises. These documents touch upon issues of both accounting in general and management accounting in particular.

By now, a system of statutory regulation of accounting has been established. The hierarchy of regulatory documents is determined by the Law of the Russian Federation "On Accounting" and is represented by three levels:

1. Laws and other acts of legislation of the Russian Federation regulating, directly or indirectly, the setting of accounting.

This level includes the Civil Code of the Russian Federation (Civil Code of the Russian Federation), the Tax Code of the Russian Federation (Tax Code of the Russian Federation), the Federal Law "On Accounting", the Federal Law "On Limited Liability Companies" ("On LLC"), the Regulation on accounting and accounting statements in the Russian Federation and regulations of the Government of the Russian Federation.

The fundamental document is the Law "On Accounting". It discloses general methodological approaches to accounting, the main requirements for its maintenance, primarily in the preparation of primary accounting documentation, accounting registers, property and liability valuation, their inventory, regulation of financial statements and defines responsibility for violation of the current accounting legislation.

The Civil Code of the Russian Federation enshrines the most important accounting standards in organizations. Civil legislation is based on the recognition of the equality of participants in the relations regulated by it, inviolability of property, freedom of contract, the inadmissibility of arbitrary interference by anyone in private affairs, the need for the unimpeded exercise of civil rights, ensuring the restoration of violated rights, and their judicial protection.

The Tax Code of the Russian Federation establishes a system of taxes and fees levied in the federal budget, as well as general principles of taxation and levies in the Russian Federation, including: types of taxes and levies levied in the Russian Federation; the grounds for the emergence (change, termination) and the procedure for fulfilling obligations to pay taxes and fees; the principles of establishing, enacting and terminating the previously introduced taxes and fees of the constituent entities of the Russian Federation and local taxes and fees; the rights and obligations of taxpayers, tax authorities and other participants in relations; forms and methods of tax control; responsibility for committing tax offenses; the procedure for appealing against acts of tax authorities and actions (inaction) and their officials.

The Law "On LLC" defines the legal status of a limited liability company, the rights and obligations of its participants, the procedure for the creation, reorganization and liquidation of the company.

A special place in the regulatory system is occupied by the Regulation on accounting and financial reporting in the Russian Federation, which determines the procedure for organizing and maintaining accounting, drawing up and submitting financial statements by legal entities, as well as the organization's relationship with external consumers of accounting information.

Documents of this level are designed to ensure uniform accounting of business operations of organizations, timely compilation and provision by interested users of comparable and reliable information about the property status of organizations, their obligations, income and expenses.

2. Normative acts and guidelines, including various recommendations on certain accounting issues, mainly by the Ministry of Finance of the Russian Federation.

At the same level of regulatory regulation is the Chart of accounts for accounting of economic and financial activities of enterprises and Instructions for its application. This Instruction establishes uniform approaches to the application of the Chart of Accounts for accounting of financial and economic activities of organizations and the reflection of the facts of economic activities in the accounts of accounting. Steps have been taken to separate financial and management accounting, to implement an accounting option with two systems of accounts. In particular, accounts 30-39 are left free and are intended to organize cost accounting by item. In essence, the enterprise is given the opportunity to organize management accounting in an autonomous mode, i.e. in a system of accounts, isolated from financial accounts.

However, a special place among the documents of the second level is occupied by provisions on certain issues of property, liabilities, capital, which determine a uniform approach to the facts and phenomena to be reflected in accounting, which is mandatory for all enterprises and organizations, regardless of ownership. These are national Russian accounting standards - accounting regulations (PBU). To date, 15 PBUs have been approved and are in operation. Let's take a look at some of them.

PBU 1/98 "Accounting policy of the organization", which establishes the basis for the formation and disclosure (publicity) of the accounting policy of organizations that are legal entities under the legislation of the Russian Federation (except for credit organizations and budgetary institutions).

PBU 10/99 "Organization Expenses" is directly related to the rules for the formation in accounting of information on the expenses of commercial organizations (except for credit and insurance organizations), which are legal entities under the legislation of the Russian Federation.

PBU 4/99 "Financial statements of an organization" - determines the composition, content and methodological foundations of the formation of financial statements of organizations. It is used when establishing: standard forms of financial statements and instructions on the procedure for drawing up reports; a simplified procedure for the formation of financial statements for small businesses and non-profit organizations; features of the formation of consolidated financial statements; features of the formation of financial statements in cases of reorganization or liquidation of an organization, etc.

Generally accepted accounting rules, defined by second-level documents, are implemented by the enterprise when it develops accounting policies. This takes into account the size, specificity, industry affiliation of the enterprise. And this is the third level of the accounting regulation system.

3. Documents of organizations, developed by them in the formation of accounting policies: instructions, job descriptions, regulations, orders for the formation of accounting policies, and other similar documents on the setting and maintenance of accounting, directly created in the organization and are internal standards.

The entire list of documents that must be approved by an order or order of the head of the organization on the adopted accounting policy is contained in the Law of the Russian Federation "On Accounting".

Thus, in the Russian legislation today there are no obstacles to the development of management accounting.

1.2 Definition and classification of overheads

An organization's expenses are recognized as a decrease in economic benefits as a result of the disposal of assets (cash, other property) and (or) the occurrence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by the decision of the participants (property owners).

To calculate the cost of manufactured products and determine the amount of profit received, costs are classified into: incoming and outgoing; direct and indirect; basic and overhead; current and one-off, etc. Overhead costs are the most important for management accounting. they are caused by management functions that differ in nature, purpose and role from production functions. These costs, as a rule, are associated with the organization of the enterprise, its management. In accordance with the method of allocating costs to the media (costing object), the overhead is indirect.

Overhead costs are the costs of maintaining and managing production and the enterprise: general production and general business, caused by the preparation and, organization, maintenance and management.

General production (production) overhead is the cost of organizing, maintaining and managing production. They arise in production units - sections, workshops, production facilities. The purpose, nature and functional role of these costs are directly related to production. The production overhead includes the cost of maintaining and operating equipment, and general shop management costs.

Equipment maintenance and operating costs include: depreciation of equipment and vehicles; routine maintenance and repair of equipment; energy costs for equipment; services of auxiliary production for maintenance of equipment and workplaces; wages and social contributions of workers servicing equipment; expenses for in-plant transportation of materials, semi-finished products, finished products; other costs associated with the use of equipment.

General workshop expenses for management consist of the following expenses: expenses for production management; costs associated with the preparation and organization of production; maintenance of the management apparatus of production departments; depreciation of buildings, structures, industrial inventory, maintenance and repair of buildings, structures, inventory; costs of ensuring normal working conditions; the cost of vocational guidance and training.

Common to both groups is that they: consist of complex articles; arise in production units; are planned and accounted for according to the places of their occurrence; controlled by the budgetary estimate method.

General economic (non-production) overhead costs are caused by management functions, which by their nature, purpose and role differ from production functions and production organization functions. These costs are incurred within the enterprise, i.e. these are administrative and management expenses; technical management costs; production management costs; expenses for the management of procurement and procurement activities; for the management of financial and sales activities; labor costs: for recruitment, selection, training of managers, training, retraining and advanced training; payment for services provided by external organizations; maintenance and repair of buildings, structures, inventory; mandatory fees, taxes, payments and deductions in accordance with the procedure established by law.

Thus, overhead costs are costs, the composition of which is limited by the following criteria:

1) costs are of a complex nature (each item of overhead costs includes costs of different economic content: material costs, labor costs, depreciation of buildings, structures and equipment, etc.);

2) the costs do not create a physical or tangible basis for the product;

3) the costs are associated with the maintenance of production and sales processes or with the management of the organization as a whole or its divisions.

The classification of costs should fully reflect all the characteristic features by which some cost items differ from others, delineate their functional role, in accordance with which each cost component performs a specific function. This approach makes it possible to more thoroughly determine the feasibility and effectiveness of the formation of cost items and their targeting.

Consider the main classification features of overhead costs:

By belonging to the production cycle: production and non-production overhead costs, this division is due to the methodology for determining the cost of production. A distinctive feature of production costs is their connection with the development and creation of a production program.

Manufacturing overheads can be classified on a per-element basis to provide more detailed cost information.

In terms of the level of control: controlled and uncontrolled overhead costs, the need to use such a grouping is determined by the fact that it regulates relations between leaders of different levels of management and allows you to identify the culprit of cost overruns.

Overhead costs are the responsibility of a particular manager at a particular level of management. Examples are cost items such as the cost of maintaining a structural unit or service costs associated with a particular stage of the production process.

By the way in which the cost center is included in the cost price: primary and secondary overhead costs. Primary is considered to be the costs that arise directly in the cost center (for the maintenance of the management personnel of the shop). Secondary costs are costs that are charged to the cost center as a result of the reallocation procedure for overhead costs or the procedure for calculating transfer prices (for transport services, for vehicle repairs).

By the way costs are reflected in management accounting: actual, budgetary and allocated overhead costs. Actual expenses - expenses that were incurred in the reporting period and reflected in management reports. Budgetary Expenditures - Expenditures that analytic accountants plan for the upcoming budget period. Actual and budgetary overhead costs can be calculated for: the enterprise as a whole; subdivision; Kind of activity; type of equipment; unit of product; operation. Allocated (absorbed, written off) overheads are overheads allocated to manufactured products in the costing process.

Since the overhead costs are the object of forecasting, it is possible to distinguish forecasted and forecasted overhead costs (unproductive payments, the share of overhead costs in the costs of marriage, etc.).

In the "standard costing" cost accounting system: under-allocated and redistributed overhead costs. If the actual overhead costs are greater than the allocated overhead costs, then under-allocated overhead costs arise. If the allocated overheads are greater than the actual ones, then reallocated overheads occur.

It is important to subdivide overheads based on the influence of factors such as seasonality. Seasonal overheads: heating costs, part of operating costs, etc.

Depending on the influence of the volume of activity ("direct costing" cost accounting system): variable and constant. Variables include costs, the value of which changes as the volume of activity and the degree of intensity of work change. Constant - costs, the amount of which remains conditionally constant regardless of changes in the volume of activity.

The above classification can be supplemented with various groupings of fixed overhead costs.

In particular, fixed overhead costs covered and not covered by marginal profit can be distinguished. Covered is the fixed overhead that has been covered by all levels of profit margin. This grouping is used in those systems that use the concept of profit margin. Uncovered overheads are fixed overheads that have not been met by all levels of profit margin. The use of this grouping is of great practical importance. If fixed costs are covered, the organization makes a profit, not covered - a loss.

Discrete overheads are of practical interest. Discrete overhead costs are costs that are constant for a specific volume of production, but have the ability to increase by a certain amount at a critical moment in time. This should be used for both budgeting and overhead analysis.

In a variable and fixed overhead environment, you can distinguish between recurring and permanent overheads.

Periodic are characterized by the fact that the moment of their occurrence is not constant. It is impossible to carry out a correlation analysis or any other statistical method on them that allows you to isolate variable and fixed costs in their environment. Examples include travel, hospitality, clothing, office building renovations, etc.

Permanent overhead costs are represented by costs incurred invariably from month to month, i.e. these are electricity costs, internal transportation costs, etc.

Variable and fixed overhead costs can be rational and irrational. The part of the cost attributable to the share of unused production capacity will be considered as an irrational overhead. Rational are costs that bring economic benefits to the organization: operating costs, costs of maintaining design departments, control departments, etc. This grouping is used in practice to implement measures to reduce overhead costs.

As part of the application of the method of functional cost accounting (ABC - method), i.e. Overhead costs are grouped by activity (function), cost objects for each activity are determined, then functional overheads are written off to the products through the cost object system. The purpose of this method is to achieve the accuracy of the results of calculating the cost of the product and cost management. At the same time, short-term variable costs are distinguished (cost carriers are machine-hours, man-hours, direct materials, etc.), long-term variables (do not change with the volume of production, but fluctuate under the influence of other factors in the long run) and fixed costs (do not depend on performance indicators for the period under review). In addition, there are costs that can be traced back to specific types of products (for example, operating costs, which are attributed to specific types of products using cost objects such as machine hours) and costs that are not traced back to specific types of products (management costs, insurance payments).

The application of the considered grouping of overhead costs in practice will make it possible to determine with the greatest accuracy the cost of production and reduce costs at the enterprise.

8) Depending on the method of writing off costs in accounting ("direct costing" cost accounting system and full cost accounting system): expenses of the period - costs that are not taken into account when evaluating inventories and are considered as expenses for the period for which they were incurred (general costs and expenses of the sale); product costs - costs that are taken into account when evaluating inventory (for example, costs charged to the cost of work in progress).

In world practice, all non-production overhead costs (general and sales expenses) are considered to be expenses of the period.

9) It is possible to group overhead costs depending on the selected management solution option. In this case, the described costs are divided into relevant and irrelevant. Relevant are overhead costs that are influenced by the chosen alternative solution (most often they are taxes, costs of intra-plant movement of goods). Irrelevant overhead costs remain unchanged for any of the selected options for management decisions (costs of maintaining buildings, structures, depreciation deductions). It is impossible to list the relevant and irrelevant costs for each particular case, so some costs may be relevant in one case and irrelevant in another.

10) Depending on the stages of inclusion in the cost of production: overheads in production, overheads in commodity output and overheads in work in progress. Overhead costs in production are understood as part of the gross costs attributed to the production of a product in the reporting period. Overhead costs in a commodity release are part of the cost of the finished product. Work-in-progress (WIP) overhead is a portion of the cost charged to the work-in-progress cost as a result of the allocation of the overhead between the finished product and the WIP.

Determining the directions of practical use of cost groupings, including classifications of overhead costs, is an important task in management accounting. This helps to determine the importance of each group of costs in the cost management system.

1.3 The value of overheads in the management accounting system

Management accounting is a system that provides information for the assessment and measurement of costs and benefits, as well as for decision-making by managers at all levels of internal management.

A modern management accounting system includes the following elements: production accounting, operational accounting, cost budgeting and cost analysis.

Production accounting is an integral part of management accounting. In fact, production accounting is a system of consolidated cost accounting and calculating the cost of production. At enterprises, the functions of production accounting are assigned to the cost accounting department in the accounting department. To maintain full-fledged management accounting, at least one more department is needed, which can be called the department of management control and analysis. Within its framework, it is necessary to form and summarize information in order to make management decisions, conduct budgeting and conduct a cost analysis.

The main tasks of accounting for overheads within the framework of management accounting include:

formation of timely, complete and reliable information about the actual overhead costs in the enterprise;

budgeting and control over the execution of overhead cost estimates;

identification of reserves for reducing overhead costs;

identification of factors influencing the change in individual elements of overhead costs;

cost management and management decision-making (distribution of overhead costs in order to determine the cost of production, analysis of overhead costs, pricing, etc.).

Management accounting is distinguished, first of all, by the ability to make decisions promptly. Using data from accounting, budgeting and analysis, accountants-analysts determine alternative options for action, collect and summarize information on them, and prepare recommendations for management. Ineffective decisions can lead to an unstable financial position of the organization, i.e. cause the loss of the market for products, increased costs, unjustified increase in stocks, etc. Unit costs are an important criterion in making management decisions. Overhead costs play a special role here.

In management accounting, the constant part of overhead costs is of particular importance, since it is it that is the most effective way to reduce the cost of goods. The main directions of action in this area can be called a reduction in the number of the administrative apparatus, a decrease in the cost of its maintenance; improving the qualifications of personnel involved in servicing production processes, and strengthening control over the use of funds in this area; introduction of a system of norms and standards for overhead costs and a deviation management system, the main goal of which is to prevent the irrational consumption of these resources.

1.4 Brief description of the enterprise LLC "Kolos"

Limited Liability Company "Kolos" further The Company is established and operates on the grounds provided for by the Civil Code of the Russian Federation, the Federal Law "On Limited Liability Companies" dated 08.02.1998. № 14-ФЗ, constituent documents and other legislative acts of the Russian Federation.

The company is a commercial organization formed in 1996.

Firm name of the company: Limited Liability Company "Kolos", abbreviated name LLC "Kolos".

The company was created for an unlimited period.

A company created as a legal entity from the moment of its state registration in accordance with the procedure established by the federal law on state registration of legal entities.

The purpose of the establishment is the production of flour and making a profit in the interests of the members of the society, as well as meeting the needs of the participants in these products, strengthening their financial position, improving the working and living conditions of their employees, rational payment of their labor, and strengthening the production base.

The Company carries out entrepreneurial activities not prohibited by law in the following areas: production activities (mill) and trading activities (wholesale and retail trade).

To achieve the set goals, LLC "Kolos" carries out all civil transactions not prohibited by law, performs transactions with property and securities, as well as other legally significant actions.

The Company independently in the manner prescribed by law solves the issues of making economic decisions, planning, supply, sales, setting prices, determines the forms of management, forms and amounts of remuneration, distributes net profit, independently sets the volume of information that is a commercial secret of the Company and measures of responsibility for its violation ...

Owns separate property, recorded on his independent balance sheet, can, on his own behalf, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and a defendant in court.

The form of ownership of the enterprise LLC "Kolosa" is private.

Has the right to open bank accounts in the Russian Federation and abroad in accordance with the established procedure. Has a round seal containing its full corporate name in Russian, an indication of its location. The Company has the right to have stamps and letterheads with its name, its own logo, as well as a trademark registered in accordance with the established procedure and other means of visual identification.

Has civil rights and bears the obligations necessary for the implementation of the activities provided for by the Charter. Certain types of activities, the list of which is determined by Federal Laws, may be carried out by the Company only on the basis of a special permit (license).

Indicators of financial and economic activity for 2004-2005. are presented in table 1.

Table 1 - Main financial results by type of activity for 2005 thousand rubles.

Based on the data presented, we can conclude that some activities are profitable, for example, such as retail.

And in order for LLC "Kolos" to develop successfully and have good indicators, it is necessary to increase the turnover and increase the retail trade turnover.

CHAPTER 2. Accounting for overhead costs at the enterprise LLC "Kolos"

2.1 System of accounts of overhead costs and their reflection on the accounts

According to the accounting policy of LLC Kolos, overhead costs are reflected on accounts 20 “Main production”, 26 “General operating expenses” and 44 “Expenses for sale”. (Annex 1)

Account 20 "Main production" is intended to summarize information about the costs of production, products (work, services) that are the purpose of creating this organization. In particular, this account is used to record the costs of flour production, and also reflects the costs of ancillary industries, costs associated with the management and maintenance of the main production, losses from rejects.

Analytical accounting for account 20 "Main production" is carried out by type of costs and types of products.

Account 26 "General expenses" are collective and distribution operating accounts. It is designed to accumulate expenses for the purpose of their subsequent distribution among various accounting objects. Allows you to summarize information about costs for management needs that are not directly related to the production process.

This account has no balances and is not reflected in the balance sheet.

Analytical accounting of general business expenses is based on the groups of these expenses, and within the groups - by items.

Account 44 "Expenses for sale" is operational, since it serves to account for business processes, to summarize information about the costs associated with the sale of products, goods, works and services.

For the LLC Kolos enterprise, account 44 “Sales expenses” reflects, in particular, the following expenses: commission fees paid to sales and other intermediary organizations; for entertainment expenses; for wages; for rent; for the maintenance of buildings, structures, premises and equipment; storage and handling of goods; advertising and other similar expenses.

Analytical accounting for account 44 "Expenses for sale" is carried out by type and item of expense.

Account 23 "Auxiliary production" is important for understanding the essence of overhead costs. It is intended to summarize information about the costs of auxiliary or service departments. In particular, this account is used to account for the costs of industries that provide: service with various types of energy; transport service; repair of fixed assets, etc.

Analytical accounting for account 23 "Auxiliary production" - by type of production.

There are several methods for reflecting overhead costs on accounts that should be used in management accounting: the method of accounting for actual costs based on reduced cost; the method of accounting for the actual reduced costs with elements of planning overhead costs (method "normal costing"); method of accounting for standard costs based on reduced cost (“standard costing” method). But LLC "Kolos" uses the method of accounting for actual full costs, which is most widely used in domestic practice.

Thus, overhead costs in the process of generating production costs are reflected by the following transactions:

Write-off of materials for production Дт 20 "Main production" Кт 10 "Materials";

Accrued wages for workers Дт 20 "Main production" Кт 70 "Payments with personnel on remuneration";

Write-off of non-production (general) overhead costs Дт 20 "Main production" Кт 26 "General business costs".

The reliability, reliability and completeness of the information received, necessary for making management decisions, depends on which cost accounting option the company uses.

2.2 Procedure for the distribution of overhead costs

Allocation of costs - a problem that is inevitable for almost every organization, it is the direct allocation of collected costs to a specific facility and the distribution of costs among different facilities.

The main goals of cost allocation are: providing information for making management decisions, calculating the profit and assets of the organization when providing financial reports to external counterparties, motivating managers and employees of the organization, the need to justify costs or calculate compensation. Different ways of allocating costs serve different purposes of the organization.

Most decisions about cost allocation are made based on causation and benefit criteria. There are also other criteria, which include equity, the ability to bear costs.

In management accounting, three methods of cost redistribution are known: the method of direct cost allocation, sequential and the method of a system of linear equations.

The method of direct cost allocation is the most common, its essence lies in the distribution of the costs of each auxiliary unit of the enterprise only on the basis of service consumers. The advantage is that there is no need for a preliminary estimate of the volume of counter services. The disadvantage of this method lies in the inability to assess the volume of services provided to each other by auxiliary units.

The re-allocation method takes into account the counter-services provided by some subsidiary departments of the enterprise to others. However, this method is also not without its drawbacks, namely, the difficulty in choosing a service unit, from which it is more correct to start the cost allocation procedure.

The system of linear equations method is a method of distribution of counter services based on the solution of a system of linear equations. This method is the most convenient to use.

The accounting policy of LLC Kolos provides for the distribution of overhead costs as a percentage of the volume of sales, i.e. the base is the revenue share.

The basis for the allocation of costs remains unchanged over a long period and is an element of the accounting policy of the enterprise.

Consider the stage by stage distribution of overhead costs in the enterprise.

At the first stage, the resulting overhead costs are posted to the accounts:

on account 20 "Main production" the costs for the production of the mill are formed;

on account 23 "Auxiliary production" auxiliary expenses;

on account 26 "General business expenses" general business expenses, which are subsequently distributed according to the proceeds for production and trade separately;

on account 44 "Selling costs" the costs of trading are formed;

At the second stage, an analysis of general operating expenses is drawn up and the result is summed up (1223.5 thousand rubles).

On the third, it is necessary to summarize the proceeds obtained as a result of the operation of the mill, trade and auxiliary production, i.e. we find the total revenue of the entire enterprise (3990.6 thousand rubles + 659.8 thousand rubles + 1319.0 thousand rubles) = 5969.4 thousand rubles.

At the final, fourth stage, the amount received is distributed among the accounts.

Calculations are performed in the following sequence:

The cost of production is calculated as a percentage. For this, the following proportion is compiled:

1223.5 / 100% * 66.9% = 818.5 thousand rubles.

On account 23 "Auxiliary production" auxiliary expenses are equal to 135.8 thousand rubles.

5969, 4 – 100%

1223.5 / 100% * 11.1% = 135.8 thousand rubles.

On account 44 "Expenses for sale" trade costs - 270.4 thousand rubles.

5969, 4 – 100%

1223.5 / 100% * 22.1% = 270.4 thousand rubles.

On the basis of such calculations, the overhead costs are allocated to the LLC Kolos enterprise. The results of the distribution of overhead costs are detailed in Table 2.

Table 2 - Result of distribution of overhead costs of LLC "Kolos", 2005

2.3 Internal reporting of overheads

Information about business transactions carried out by an economic entity for a certain period of time is summarized in the relevant registers and from them is transferred in a grouped form to the financial statements. In the system of normative regulation of accounting, financial statements are considered as a system of indicators reflecting the property and financial position of an organization at the reporting date, as well as financial results for the reporting period. Such a procedure for generalizing accounting information is necessary primarily for the enterprise itself and is associated with the need to clarify, and in some cases adjust the further course of its financial and economic activities. Therefore, the financial statements should reveal any facts, the content of which may affect the assessment by users of information about the state of property, financial situation, profit and loss.

Internal reporting is a system of interrelated economic indicators that characterize the performance results of divisions for a certain period of time. Management reports are prepared at regular intervals. They cover all business processes: production, sales.

The financial statements of Kolos LLC include a profit and loss statement and a statement of accounts payable.

The profit and loss statement (form No. 2) characterizes the financial results of Kolos LLC for the reporting period. (Appendix 2) The data in the report is presented on an accrual basis from the beginning of the year to the reporting date (for 2004). At the same time, column 3 contains data for the reporting period, and column 4 - for the same period of the previous year. Negative readings are written in parentheses.

General production expenses, as well as general business expenses, are reflected under the item "Administrative expenses".

Costs related to the sale of products are reflected in the “Selling expenses” line of the income statement. Data under the item "Selling expenses" show the level of costs associated with the sale of products.

Accounts payable certificate is presented for 2005. (Appendix 3) The certificate is drawn up for the goods (works, services) accepted for accounting, including fixed assets, intangible assets, property rights. It indicates the full name of the organizations, INN \ KPP, the number and date of the invoice, and the amount of accounts payable. Column 4 reflects the entire amount of debt, and in column 5 the amount of VAT, including calculated. At the end, the total amounts are calculated for both 4 and 5 columns.

Thus, the LLC Kolos enterprise has debts in the amount of 61,478.17 thousand rubles, including VAT of 9197.34 thousand rubles.

In addition, the chief accountant of Kolos LLC conducts an analysis of general operating costs, an analysis of auxiliary production, the results of the trade, an analysis of the mill's operation, and the final analysis is the general analysis of the Kolos LLC.

The analysis of general business expenses is given for 2004-2005. and includes the following expenses: wages, deductions from wages, electricity, depreciation, fuels and lubricants, spare parts, stationery, communication services, corporate communications, building rent, Volga rent, travel expenses, water, heating and other expenses (bank service , subscription to newspapers, cash register maintenance, labor protection, training, legal services). The deviations of the last year in comparison with the baseline are presented. As a result, general operating expenses in 2005 amounted to 1223.5 thousand rubles, in 2004 - 1107.5 thousand rubles. those. expenses increased by 116 thousand rubles. due to higher wages, increased use of communication services and legal services, but the cost of purchasing spare parts decreased. (Appendix 4)

Analysis of auxiliary production for 2004-2005 shows the volume of services (revenue), wages, salary deductions, depreciation, fuels and lubricants, spare parts, rent, travel expenses, general business expenses and other expenses (car repair, technical inspection, transport tax, labor protection). The costs of auxiliary production are equal to 681 thousand. rub. in 2005 and 2004. - 604.1 thousand. rub. And the volume of services in 2005. were produced for 659.8 thousand rubles, which is 21.2 thousand rubles. less than costs. (Appendix 5)

The results of the trade work of LLC "Kolos" are presented for 2004-2005. and for the 4th quarter of 2005 for 2004-2005. such indicators as turnover, gross income, costs, financial results, the level of trade margins (in percent), costs per 1 ruble are considered. turnover, UTII and the financial result after tax. For the 4th quarter - turnover, realized overlays, profit from sales, number of sellers, average salary of sellers. The results are held in stores: Khlebushko-1 and Khlebushko-2, and the latter is divided into retail and other sales. In 2005 the trade of LLC "Kolos" has a profit in the amount of 110.1 thousand. rubles, which is 90.8 thousand rubles. more compared to 2004 (Appendix 6 and 7)

The analysis of the mill operation was compiled for 2004-2005. Contains the same indicators as the analysis of auxiliary production. Only other expenses include a large number of expenses, since the mill is the main activity of Kolos LLC. Analyzing the operation of the mill, we can say that in 2005 the proceeds increased in comparison with 2004 by 1,063.2 thousand rubles, but the operating costs also increased by 1,343.1 thousand. rub. Total costs in 2005 amounted to 6886.9 thousand rubles, including other expenses 162 thousand rubles. (ecology, maintenance of special automatics, equipment, repair of scales, garbage disposal, etc.). The financial result shows that the company bears losses, because in 2005 it is equal to -2896.3 thousand rubles. (profit = revenue - cost = 3990.6 thousand rubles - 6886.9 thousand rubles). (Appendix 8)

At the end of the year, on the basis of the above analyzes, the chief accountant of LLC Kolos makes a summary analysis. This analysis summarizes all activities of the organization: mill, auxiliary production, wholesale and retail trade. Such indicators as revenue, cost price and financial result are considered. Revenue increased by 4850.3 thousand rubles. The growth took place in all types of activities and especially in retail trade. The cost of the enterprise also increased by 4962.1 thousand rubles. In general, Kolos LLC incurs losses due to such activities as mills and auxiliary production, they need to be reduced. Trade activities, mainly retail, are profitable. Therefore, Kolos LLC should develop this type of activity by expanding retail space, improving the quality of service and meeting the demand of the population. (Appendix 9)

Thus, reports on overhead costs allow Kolos LLC:

allocate responsibility for overhead costs;

distribute overhead costs between activities;

develop measures to reduce overhead costs based on information about cost carriers (cost carriers are reduced and overhead costs are reduced);

prepare information for making management decisions;

analyze the deviations of overhead costs depending on the factors that influence them;

to carry out operational management of deviations.

CONCLUSION

The issues considered in the work allow formulating a number of general conclusions and provisions.

The main generalizations include the following conclusions:

1. The procedure for conducting accounting management accounting in terms of overhead costs is regulated by such regulatory and legal acts as the Federal Law "On Accounting", the Civil Code of the Russian Federation, the Tax Code of the Russian Federation, as well as provisions on accounting. But the most important and necessary for any type of activity is the Chart of Accounts and Instructions for its use, since on their basis, the organization approves a working chart of accounts of accounting, containing a complete list of synthetic and analytical accounts required for a given enterprise.

2. Overhead costs are generated in connection with the organization, maintenance of production, sales of products and management. Costs are subdivided into general production overheads, which include the costs of organizing, maintaining, and managing production, and general overheads caused by management functions. The amount of these costs depends on the management structure of the organization, the business policy of the administration and other factors.

Also, overhead costs are classified according to the following criteria: by belonging to the production cycle; by the level of control; by the way in which the cost center is included in the cost price; by the way costs are reflected in management accounting; in the "standard costing" cost accounting system; depending on the influence of the volume of activity ("direct costing" cost accounting system); as part of the application of the method of functional cost accounting (ABC - method); depending on the method of writing off costs in accounting; depending on the selected option for management decisions; depending on the stages of inclusion in the cost of production.

3. Course work is based on the example of LLC "Kolos". The types of activity, which are flour production and wholesale and retail trade.

The main overhead costs are: depreciation of equipment and vehicles; routine maintenance and repair of equipment; energy costs; services of auxiliary production for maintenance of equipment and workplaces; wages and social contributions of workers servicing equipment; costs of ensuring normal working conditions; the cost of vocational guidance and training.

These expenses are reflected in the following accounts: 20 "Main production", 23 "Auxiliary production", 26 "General business expenses", 44 "Sales expenses".

The most important is account 26 "General expenses", because it is a collective and distribution transaction account. It summarizes information on costs for management needs that are not directly related to the production process (repair costs, rent).

The enterprise LLC "Kolos" uses the method of accounting for actual full costs, which is widely used in domestic practice.

Distribution of overhead costs is very important for all enterprises, including Kolos LLC. with the help of distribution, you can evaluate the performance for a certain period of a department; distribution is also used to calculate and analyze the profitability of products or customers, etc.

Allocation of costs - allocation of costs for specific purposes.

According to the accounting policy of LLC Kolos, overhead costs are distributed as a percentage of the volume of sales, the base is the share of the proceeds of each production unit.

The basis for cost allocation remains unchanged over a long period and is an element of the accounting policy of LLC Kolos.

4. The internal reporting of LLC Kolos includes a Profit and Loss Statement (Form No. 2), a statement of accounts payable and reports by type of activity. The chief accountant also performs year-end analysis. On the basis of which it can be concluded that the company needs to develop such activities as retail and wholesale trade. And to reduce the volume of activities of the mill and auxiliary production, because they bring losses, which makes enterprises uncompetitive and financially unstable.

Thus, management accounting of overhead costs is necessary for effective cost regulation, defining the areas of responsibility of managers, solving problems with identifying the most accurate indicators of the cost of production, if the need arose. Analysis of these costs allows you to find out what costs are due to which decisions, what can be undertaken in the future in relation to them, and also solve a number of issues: the choice of profitable orders, planning of future directions of activity, distribution and minimization of costs, budgeting and analysis of deviations.

LIST OF USED LITERATURE

1. Civil Code of the Russian Federation, parts 1 and 2 of 30.11.1994. No. 52-ФЗ and dated 26.01. 1996 No. 15-FZ with amendments and additions.

2. Tax Code of the Russian Federation, parts 1 and 2, as amended and supplemented.

3. Federal Law of the Russian Federation "On Accounting" dated 21.11.1996. No. 129-FZ. (as amended on July 23, 1998 No. 123-FZ, etc.)

4. Federal Law of the Russian Federation of 08.02.1998. No. 14-FZ "On Limited Liability Companies".

5. Regulations on accounting and financial reporting in the Russian Federation. Approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998. No. 34n.

6. Regulation on accounting "Accounting policy of the organization" (PBU-1-98). Approved by the order of the Ministry of Finance of the Russian Federation dated 09.12.1998. No. 60N with changes and additions.

7. Regulation on accounting "Financial statements of the organization" (PBU-4-99). Approved by order of the RF Ministry of Finance dated 06.07.1999, No. 43n.

8. Regulation on accounting "Organization's expenses" (PBU-10-99). Approved by order of the Ministry of Finance of the Russian Federation of December 30, 1999, No. 107n.

9. Chart of accounts for accounting of financial and economic activities of the organization and instructions for its use, approved by order of the Ministry of Finance of the Russian Federation of October 31, 2000. No. 94n (as amended by the subsequent order).

10. Comments to the new chart of accounts. / Edited by A.S., Bakaev, - M .: "Information agency IPB-BINFA", 2001.

11. Accounting: Textbook / A.S. Bakaev, P.S. Bezrukikh, N. D. Vrublevsky and others; Ed. P.S. Handless. - 4th ed .; revised and additional - M .: Accounting, 2002. - 719s. ISBN 5-85428-103-1

12. Vakhrushina M.A. Management accounting: Textbook for universities. 2nd ed., Add. and lane. - M .: BRA Omega - L; Higher. shk., 2002 .-- 528 p. ISBN 5 - 901386-48-5 IKF. ISBN 5-05-004377-0 Omega - L (Higher school).

13. Goloviznina A.T., Arkhipova O.I. Management accounting: Textbook. allowance. - M .: TK Welby, Prospect Publishing House, 2003 .-- 184 p. ISBN 5-98032-070-9.

14. Ivashkevich V. B. Management accounting: Textbook. For universities. - M .: Jurist, 2003. - 618 p. ISBN 5-7975-0540-1 (in trans.).

15. Karpova T.P. Management accounting: Textbook for universities. - M .: UNITI, 2000 .-- 350 p. ISBN 5-238-00034-0.

16. Kerimov V.E. Management accounting: Textbook. - 3rd ed., Rev. and add. - M .: Publishing and trade corporation "Dashkov and Co", 2004. - 460 p. ISBN 5-94798-340-9.

17. Kerimov V.E. Modern systems and methods of accounting and cost analysis in commercial organizations: Textbook. - M .: Publishing house Eximo, 2005 .-- 144 p. (Higher economic education). ISBN 5-699-11244-8.

18. Kondratov I.G. Fundamentals of management accounting: Textbook. Benefit. - M .: Finance and statistics, 2000. - 160 p .: ill. ISBN 5-279-02333-7.

19. Kukukina I.I. Management accounting: Textbook. allowance. - M .: Finance and statistics, 2004. - 400 p .: ill. ISBN 5-279-02812-6.

20. Sokolov A.Yu. Management accounting of overhead costs. - M .: Finance and statistics, 2004. - 448 pp. ISBN 5-279-02720-0.

21. Horngren Ch.T., Foster J. Accounting management aspect: Per. from English / Edited by L.V. Sokolov. - M .: Finance and statistics, 1995. - 416 p .: ill. - (Series on accounting and auditing). ISBN 5-279-01212-2.

22. Horngren Ch.T., Foster J., Datar Sh. Management accounting, 10th ed. / Per. from English - SPb .: Peter, 2005. - 1008 p .: (Series "Business class"). ISBN 5-94723-174-3.

23. Management accounting: Textbook / Edited by A.D. Sheremet. - 2nd ed., Rev. - M .: IDFBK - PRESS, 2001 .-- 512 p. ISBN 5-88103-042-7.

24. "Chief accountant" No. 4/2006, p.36.

25. "Accounting" No. 4/2006, p.5.

Overhead is a topic that interests many business leaders and entrepreneurs. The complexity of determining and accounting for overhead costs lies in the fact that the legislative framework contains clear instructions on what overhead costs are, only with respect to their control during construction, and the concept itself covers a lot of other accompanying expenses in the implementation of production activities, management and maintenance of the enterprise, including such indirect costs as the cost of maintaining transport (insurance, fuel, repairs, etc.).

In calculating overhead costs, it is necessary to take into account such indicators as losses from marriage, downtime, payment of penalties.

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The essence of the indication of overhead costs is the accounting of the entire amount of costs that are incurred outside the implementation of the production process directly. This concept defines spending on the creation of successful conditions for the organization and operation of the enterprise.

The concept covers the costs taken into account when determining the cost of the product of the organization's activities through the distribution into the following types of expenses:

general production;
commercial;
general business;
maintenance and operation of production equipment.

In fact, overhead costs are designed to provide the enterprise with a favorable environment for the successful functioning of the organization and the work of employees:

salary deductions for office workers responsible for managing the production process and resolving personnel issues;
communication costs, internet, telephone;
office space maintenance (eg renovations, rent payments, bill payments, insurance);
UST (social tax) of employees;
advertising costs, costs of PR events;
pay for line personnel;
expenses for servicing credit debt, leasing;
repair work of production equipment, tools, vehicle fleet of the organization.

This type of expenses is included in the indirect expenses of the enterprise and is subject to attribution to the additional part of direct expenses. Overhead costs are not directly related to the establishment of the cost of the product of the enterprise.

Cost accounting is used to control the movement of funds of the enterprise in relation to the coverage of certain operations. It is impossible to clearly separate these cost items from direct costs, since in certain circumstances costs can be attributed to direct costs or indirect.

Existing species

All overhead costs can be divided into the following types:

General production	These include: maintenance, operation of vehicles, equipment; depreciation, expenses for the repair of fixed assets; insurance; heating, lighting, maintenance; rental of premises, machinery, equipment in production; remuneration of service personnel; other expenses.
General business	Includes costs for: control; the maintenance of employees not involved in the main production; depreciation for the repair of funds of administrative and managerial and general economic value; information and audit services, consultation; lease of areas of general economic importance; other management expenses.
Implementation costs	This includes the costs of: sales organization, marketing; packing materials and containers; dispatch and loading of products; printing of advertising materials; sales and mediation commissions; storage of products in a room with remuneration of service personnel (agricultural sector); representative; other similar expenses covering analysis, storage, sorting of products.

Important points

Main steps

Overhead costs are subject to control and accounting, taking into account the following provisions:

Overhead costs are accounted for with their posting to expense accounts. Certain costs are to be reported only once for the period in which the actual payment occurred. Recognized expenses that are not due due yet are charged to accounts payable.
Costs related to a strictly defined period (rent, utilities, labor costs) are taken into account only in the period in which they occurred.
Obligatory separation is subject to expenses included in the cost of the product from overhead expenses that were incurred in a certain period of time. The division is made according to the types of accounts in the plan. All reported accounts are posted according to the assigned category.
The cost price is taken into account with the separation of the "cost price" type, which is taken into account when generating the profit / loss statement with summing up the gross profit of the expenses automatically posted according to their group in aggregate with income.
All other expenses are to be taken into account in the formation of the "net profit" indicator and reflected in accounts of the "expenses" type.
The composition of the structure of accounts by cost is similar to the scheme of income accounts, with compensation of cost by income.
The maintenance of accounting policies and the preparation of the chart of accounts occurs with the allocation of expenses to the cost price and overhead expenses of a certain period, which are not taken into account in the valuation of inventories.
Direct production costs for industrial enterprises are included in the cost of the product, non-production costs are included in expenses by period.

Data composition and control

A significant layer of cost items is included in the overhead costs:

repair work, expenses for the maintenance of structures, industrial facilities, equipment.
wages, training, expenses for the maintenance of managerial workers;
expenses for the unified social tax;
maintenance of transport;
office and warehouse rent;
costs due to downtime or marriage;
social insurance contributions, other compulsory charges;
operation, maintenance of equipment related to fixed assets;
receiving consulting services, advertising;
Communal expenses;
maintenance of main production facilities;
payment for communication, internet, fax and other expenses.

All overhead costs are divided into four large groups:

production and organizational costs;
administrative expenses;
labor costs;
expenses for non-production purposes.

The difficulty is caused by the fact that tax legislation does not regulate the structure and definition of overhead costs. An exception is the direction of overhead costs in the construction sector. And in accounting, there is also no clear distinction in overheads.

In the posting of overhead costs of trade organizations, the posting of costs for packaging, delivery, sales, storage of manufactured products is provided.

Estimate calculation details

Each specific case of accounting for overhead costs requires special consideration: it all depends on the specifics of the organization's activities.

Depending on the purposes of use, functions, production volumes, the following division is made:

construction standards applied during the preparation of estimates for investments and tenders;
standards for installation, construction, repair, used in the process of drawing up working projects, payments for work;
standards approved individually when enterprises carry out installation, repair and construction activities and applied in consolidated rates of overhead costs.

Interest, distribution and use of funds

The percentage, determined in a generalized way for all overhead costs of the enterprise, is established depending on the characteristics of the type of activity, the conditions of operation.

Nevertheless, certain principles of calculation are highlighted, how many percent will represent the share of overhead costs in the total estimate, depending on whether the costs are direct or overhead. Administration, sales and storage costs are classified as overheads.

There are various indicators that allow you to properly allocate and account for overhead costs.

The most common indicators of distribution include:

volume of sales;
machine clock;
direct material costs, etc.

Most often, the distribution of overhead costs by volume of sales is resorted to by organizations working in the service sector or in the production of products using high-tech equipment. All costs are allocated to various types of products, depending on the volumes sold.

Expenses are no less often distributed according to the indicator of remuneration of workers employed in the main production, provided that manual labor is used to a large extent in their activities.

The use of this indicator in mechanical production will certainly cause distortions in determining the cost of the product. In fact, accounting for this indicator means the use of the so-called. "Man-hours" per unit of production.

Accounting for overhead costs depending on the number of machine hours is suitable for use in enterprises with automated production lines. In circumstances where material direct costs are much higher than overhead costs, the indicator of accounting for material costs incurred in the production of 1 unit will be applied.

There is no clear answer as to how to post overhead costs in each individual case, since any enterprise or organization has its own characteristics in commercial activities, with the inclusion of various auxiliary facilities, additional production facilities. In this regard, the structure of overhead costs is distinguished by its heterogeneity.

Nevertheless, there are guidelines applied to a particular type of activity or features of the organization's activities:

Norms MDS 81 33.2004

For overhead costs associated with the implementation by contractors of work on overhaul of production facilities, the application of standards is provided in accordance with the sizes established for construction work.

Construction work within the framework of the economic method is subject to accounting in overhead costs in accordance with an individually assigned rate. In the estimates of the norms of this work plan, the use of a coefficient of 0.6 is provided.

When determining the cost of semi-finished products, blanks for production, overhead costs are to be calculated in accordance with an individually assigned rate, or in the established amount of 0.66 of the payroll for workers employed in construction and mechanization.

Starting from 2011, the provisions of IBC 81-33.2004 (clause 4.7) and IBC 81-34.2004 (clause 3.7) are terminated, and a new coefficient applied to overhead costs is introduced in the amount of 0.85.

The exception is the standards financed from the state budget for:

pile works;
building bridges;
pipeline;
soil consolidation measures;
laying of tunnels, subways.

In addition, when determining the cost of a construction or reconstruction product, performing overhaul, current repairs, it is envisaged to use reducing coefficients at the level of 0.85 for overhead costs, as well as 0.8 for estimated profit in terms of current prices in the following cases:

attribution to overhead costs according to consolidated standards (main types of construction, according to MDS 81-33.2004 and MDS 81-34.2004);
attribution according to industry-wide standards of estimated profit as part of the amount of construction and installation activities in the amount of 0.65 or 0.6 of the cost of repair and construction work (MDS 81-25.2001);
according to the recommended norms of the estimated profit (construction and installation works) according to the letter No. AP-5536-06 of the Federal Agency for Construction of the Russian Federation dated 11/18/2004.

The most difficult nuances

Articles on costs for construction

The complete list of all items of overhead costs in 2020 is extremely wide and can be attributed to one group or another.

Administrative costs include:

costs of salaries of the personnel of the administrative part;
expenses for the management staff, including employees and specialists;
expenses for line and service personnel;
unified social tax payments to employees from the AHP, employees of servicing vehicles;
postal services, telegraph, long distance calls, the use of cellular communications, other means of communication, the Internet;
payment for computer modernization, installation of new programs, PC maintenance;
payment for printing works;
payments for the maintenance / operation of buildings, areas for AHP;
payment for the services of lawyers, notaries, auditors, information sphere;
purchase of stationery;
business trips, traveling expenses of employees;
maintenance of the company's vehicle fleet and garages for it;
staff relocation costs;
various kinds of fees for employees and delivered products or raw materials;
Banking services;
depreciation within the scope of the management staff;
hospitality expenses;
payment for services for conducting market research in order to stimulate the process of selling products;
other expenses related to the functioning of the administrative part.

The second major group of items is the cost of:

personnel training, education, trainings;
unified social tax for employees involved in construction work performed as overhead costs;
sanitation and hygiene measures;
depreciation, rent, repair of mobile structures used for sanitary or domestic purposes;
remuneration of maintenance personnel working in the area of production maintenance;
expenses for creating working conditions;
services of outside legal entities. persons organizing the process of meals, provision of medical services for employees;
safety measures;
the cost of overalls for workers;
social insurance contributions;
medical examinations, workplace certification.

Separately, other groups of overhead items are distinguished:

for all construction work and related activities on construction sites;
other overhead costs related to intangible assets, bank payments, loans, advertising costs;
cost items not taken into account in the norms, but attributable to overhead costs (payments on insurance premiums, deductions to insurance funds, tax, deductions under the law, certification, commission fees, etc.).

Transport share of expenses

It is especially important to take into account transport costs in postings when planning an estimate.

This group includes many indicators related to processes:

the purchase of vehicles for production purposes;
lease of vehicles for production needs;
operation and repair of industrial vehicles;
payment of expenses for fuels and lubricants;
similar costs of transport used for business purposes.

It is necessary to make an estimate with the inclusion of all needs in relation to transportation costs, taking into account the likely changes in current prices or the cost of services. It is rather difficult to determine the exact value of the costs of transport costs, which entails the use of short periods of time in the calculations. The degree of calculation accuracy also depends on production volumes and current and ongoing needs for transport and other equipment.

What is the amount of overhead costs determined

The overhead costs laid down in the planned rate when drawing up the estimate are distributed and accounted for by the types of activities of the organization, which gives the main income, as well as taking into account the scale of production.

A direct dependence of overhead costs in the general estimate on:

payroll fund;
service costs;
management costs;
installation, other types of work.

In the market conditions of management, it became obvious that the most manageable from the standpoint of finding reserves for saving the growth of profits and profitability at the enterprise that determined the program of production and sales are gradually becoming not the main but overhead costs. The results of studies by domestic and foreign experts indicate that overhead costs in most industries are constantly increasing both in absolute amount and in relation to the total cost of an economic entity. The most important for ...

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Introduction

1.1. The concept and essence of production overhead costs in the management accounting system ........................................ .................................................. ...................

1.2. Classification of expenses ................................................ .................................................

2.1. Brief description of the enterprise on the example of LLC "BEKPR" ……………… ..

2.2. Accounting and distribution of production overhead costs …………………….

2.3. Ways to improve the efficiency of the enterprise ……………………….

Conclusion

List of used literature

Introduction

Relevance of the topic.In the market economy, it became obvious that the most manageable from the standpoint of searching for savings, growth in profits and profitability at the enterprise that determined the program of production and sales, gradually become not basic, but overhead costs.

The direction of improving the activities of management accounting can serve as the creation of a unified accounting, budgeting and analysis of overhead costs.

Target work is to consider the features of accounting and distribution of production overhead costs.

In accordance with the set goal, the following tasks :

Consider the concept and essence of production overhead costs in the management accounting system;
Determine a brief description of the enterprise LLC " BEKPR ";
Give accounting and distribution of production overhead costs;
Identify ways to improve the efficiency of the enterprise.

Object research course work is an enterprise LLC "BEKPR".

Subject coursework - accounting for production overheads.

Work structure.The course work consists of an introduction, four questions, a conclusion and a list of used literature.

The course work is written using such regulatory documents as the Law "On Accounting", as well as articles by domestic and foreign economists, textbooks and teaching aids, as well as periodicals.

Chapter 1. Theoretical aspects of production overhead costs

1.1. The concept and essence of production overhead costs in the management accounting system

An organization's expenses are recognized as a decrease in economic benefits as a result of the disposal of assets (cash, other property) and (or) the emergence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by the decision of participants (property owners) 1 .

General production (production) overhead is the cost of organizing, maintaining and managing production. They arise in production units - sections, workshops, production facilities. Purpose, nature and functional role of these costs, directly related to production. The production overhead includes the cost of maintaining and operating equipment, and general shop management costs.

Thus, overhead costs are costs, the composition of which is limited by the following criteria:

1) costs are of a complex nature (each item of overhead costs includes costs of different economic content: material costs, labor costs, depreciation of buildings, structures and equipment, etc.);

2) the costs do not create a physical or tangible basis for the product;

3) the costs are associated with the maintenance of production and sales processes or with the management of the organization as a whole or its divisions.

1.2. Cost classification

Consider the main classification features of overhead costs:

by belonging to the production cycle: production and non-production overhead costs, this division is due to the methodology for determining the cost of production. A distinctive feature of production costs is their connection with the development and creation of a production program. Manufacturing overheads can be classified on a per-element basis to provide more detailed cost information.
by the level of control: controlled and uncontrolled overhead costs, the need to use such a grouping is determined by the fact that it regulates relations between leaders of different levels of management and allows you to identify the culprit of cost overruns.

by the way in which the cost center is included in the cost price: primary and secondary overhead costs. Primary is considered to be the costs that arise directly in the cost center (for the maintenance of the management personnel of the shop). Secondary costs are costs that are charged to the cost center as a result of the reallocation procedure for overhead costs or the procedure for calculating transfer prices (for transport services, for vehicle repairs). 4
by the way costs are reflected in management accounting: actual, budgetary and allocated overhead costs. Actual expenses - expenses that were incurred in the reporting period and reflected in management reports. Budgetary Expenditures - Expenditures that analytic accountants plan for the upcoming budget period. Actual and budgetary overhead costs can be calculated for: the enterprise as a whole; subdivision; Kind of activity; type of equipment; unit of product; operation. Allocated (absorbed, written off) overheads are overheads allocated to manufactured products in the costing process.

it is important to subdivide the overhead costs depending on the influence of factors such as seasonality. Seasonal overheads: heating costs, part of operating costs, etc.
depending on the influence of the volume of activity ("direct costing" cost accounting system): variable and constant. Variables include costs, the value of which changes as the volume of activity and the degree of intensity of work change. Constant - costs, the amount of which remains conditionally constant regardless of changes in the volume of activity.

The above classification can be supplemented with various groupings of fixed overhead costs.

In a variable and fixed overhead environment, you can distinguish between recurring and permanent overheads.

Permanent overhead costs are represented by costs incurred invariably from month to month, i.e. these are electricity costs, internal transportation costs, etc.

within the framework of the application of the method of functional cost accounting (ABC - method), i.e. Overhead costs are grouped by activity (function), cost objects for each activity are determined, then functional overheads are written off to the products through the cost object system. The purpose of this method is to achieve the accuracy of the results of calculating the cost of the product and cost management. At the same time, short-term variable costs are distinguished (cost carriers are machine-hours, man-hours, direct materials, etc.), long-term variables (do not change with the volume of production, but fluctuate under the influence of other factors in the long run) and fixed costs (do not depend on performance indicators for the period under review). In addition, there are costs that can be traced back to specific types of products (for example, operating costs that, using cost objects such as machine hours, are attributed to specific types of products) and costs that are not traced back to specific types of products (management costs, insurance payments) ...

The application of the considered grouping of overhead costs in practice will make it possible to determine with the greatest accuracy the cost of production and reduce costs at the enterprise 7 .

depending on the method of writing off costs in accounting (direct costing cost accounting system and full cost accounting system): expenses of the period - costs that are not taken into account when assessing inventories and are considered as expenses for the period for which they were incurred (general business expenses and sales costs); product costs - costs that are taken into account when evaluating inventory (for example, costs charged to the cost of work in progress).

In world practice, all non-production overhead costs (general and sales expenses) are considered to be expenses of the period.

overhead costs can be grouped depending on the selected management solution option. In this case, the described costs are divided into relevant and irrelevant. Relevant are overhead costs that are influenced by the chosen alternative solution (most often they are taxes, costs of intra-plant movement of goods). Irrelevant overhead costs remain unchanged for any of the selected options for management decisions (costs of maintaining buildings, structures, depreciation deductions). It is impossible to list the relevant and irrelevant costs for each particular case, so some costs may be relevant in one case and irrelevant in another.
depending on the stages of inclusion in the cost of production: overheads in production, overheads in commodity output and overheads in work in progress. Overhead costs in production are understood as part of the gross costs attributed to the production of a product in the reporting period. Overhead costs in a commodity release are part of the cost of the finished product. Work-in-progress (WIP) overhead is a portion of the cost charged to the work-in-progress cost as a result of the allocation of the overhead between the finished product and the WIP.

Management accounting is a system that provides the formation of information for the assessment and measurement of costs and benefits, as well as for decision-making by managers at all levels of internal management 8 .

A modern management accounting system includes the following elements: production accounting, operational accounting, cost budgeting and cost analysis.

The main tasks of accounting for overheads within the framework of management accounting include:

formation of timely, complete and reliable information about the actual overhead costs in the enterprise;
budgeting and control over the execution of overhead cost estimates;
identification of reserves for reducing overhead costs;
identification of factors influencing the change in individual elements of overhead costs;
cost management and management decision-making (distribution of overhead costs in order to determine the cost of production, analysis of overhead costs, pricing, etc.).

Chapter 2. Accounting for production overheads and costs at the enterprise on the example of LLC "BEKPR"

2.1. Brief description of the enterprise on the example of LLC "BEKPR"

The object of research in the course work is a limited liability company, hereinafter - LLC "BEKPR".

LLC "BEKPR" is registered in the Alamudun State Tax Inspectorate, TIN 02403200010154, OKPO 22447629. LLC "BEKPR" is a payer of land tax, income tax from employees' salaries, insurance contributions to the Social Fund, enjoys a privilege to pay income tax, VAT and sales tax as a manufacturer and processor of agricultural products (Articles 212, 239, 315 of the Tax Code of the Kyrgyz Republic).

Limited Liability Company "BEKPR" was founded as a legal entity on May 24, 2001 at the address: Lebedinovka village, Alamudunsky district, Beregovaya street 1 "a". LLC "BEKPR" carries out its activities in accordance with the requirements of the Civil Code of the Kyrgyz Republic, the Law of the Kyrgyz Republic "On Business Associations and Companies", the Labor Code, the Tax Code, as well as other norms of the current legislation, norms of international law, the Charter and the Memorandum of Association.

The authorized capital is 500 soms.

The name of the company originated from the initial letter of the names of the founders:

B - Bektursyn,

E - Yerzhan,

K - Kadyrkul,

P - Pavel,

R - Rahman.

Bazhanov Rakhmankul Salmanovich and Bazhanov Kadyrkul Salmanovich are siblings. Rakhmankul is the founder of Rikha LLC, Kadyrkul founded BEKPR LLC. The brothers began their labor activity in 1992 as meat procurers in the Kyrgyzpotrebsoyuz (trade and purchasing base). Then they supervised the TZB animal husbandry, which was engaged in dressing mink, arctic fox, astrakhan fur. Having gained sufficient experience in this field of activity, Bazhanov Rakhmankul decided in 1996 to create his own company for the production of sausages with the support of his brother Kadyrkul, and in 2001 Kadyrkul founded LLC “BEKPR”. On the territory of the village of Lebedinovka, land was purchased for the construction of a mill and a bakery, then cowsheds were bought for raising pigs and cattle for the production of pork and beef.

At this time, the company is equipped with specific equipment for the production of various types of bakery and sausage products, milk processing, auxiliary equipment, computer technology and modern means of data processing and transmission.

At present, BEKPR LLC has fields with a total area of 350 hectares, leased in Logvinensky, Syntashsky, Buraninsky, Lebedinovsky and Frunzensky ayil-okmotu, where it grows wheat and alfalfa, as well as 118 hectares of its own land in Novo-Pavlovka. Alfalfa is used as feed for pigs and young cattle, which are raised for the production of sausages. Wheat is used for baking bread as well as for feeding livestock.

The management of the Company is carried out directly by the founder. Bazhanov Yerzhan Amanovich was appointed General Director, who is in charge in accordance with the Charter and the Constituent Agreement of LLC “BEKPR”.

The accounting service performs very important functions in production management at BEKPR LLC. Accounting serves as the most important tool for the management and control of economic activities, contributes to the receipt of profit, the correct use of monetary, material and labor resources.

Accounting at BEKPR LLC is an integral part of the management apparatus, is closely connected with all services, departments and production units of the enterprise, receives from them the documentation necessary for accounting and control and provides them with economic information about the results of work. Thus, it has a direct impact on the course of production, supply and marketing of products, relationships with debtors and creditors, timely calculation and payment of taxes and insurance premiums, profitability and other economic indicators.

With the increase in information and the transition of LLC "BEKPR" to IFRS in 2009, it became necessary to create information technologies. To manage the enterprise, a special program "1C Enterprise" was developed, which continues to be developed and improved. The accounting department of BEKPR LLC consists of the chief accountant and his assistant, who, if necessary, performs the functions of the chief accountant. Both employees have higher education in economics with a degree in Accounting, Analysis and Audit. The chief accountant and his assistant perform their duties in accordance with the developed job descriptions.

LLC "BEKPR" has an archive for storing accounting documents and reports.

In LLC BEKPR, in accordance with the Resolution of the Kyrgyz Republic “On Amendments to the Resolution of the Government of the Kyrgyz Republic No. 593“ On IFRS ”dated September 28, 2001, starting from 2009, accounting of economic activities is carried out according to the 2002 chart of accounts recommended for enterprises that have switched to IFRS. Until 2009, the financial statements were prepared according to the 1995 chart of accounts.

In the course of the study, it was found that the order on accounting policy and the developed accounting policy in writing, as such, is not available in BEKPR LLC. However, when familiarizing with the organization of the accounting process, it was found that LLC "BEKPR" follows international accounting standards. There is a working chart of accounts, developed on the basis of the Chart of accounts for accounting of financial and economic activities of entities and guidelines for its application, recommended by the Resolution of the State Commission under the Government of the Kyrgyz Republic on financial reporting and audit standards dated November 18, 2002 No. 28.

The reporting period for the preparation of financial statements starts from January 1 and ends on December 31 inclusive.

All balance sheet items are measured in national currency - som. The journal-order form of accounting and the principle of double entry are applied. Correspondence of accounts is in accordance with the recommendations for the use of the chart of accounts. When assessing balance sheet items, the following requirements are met:

Mutual offsets between the Asset and Liability items are not allowed

Balance sheet items are not collapsed

Numerical key figures are included in the Net valuation.

Balance sheet items are confirmed by the results of the inventory.

To formalize the facts of economic life, primary documents of the standard form are used.

Inventories are recorded on a continuous accounting system, i.e. the receipt and consumption of inventory is reflected directly on the accounts of the inventory of group 1600.

Fixed assets are accounted for according to the classification groups provided for in the chart of accounts at their historical cost and the amount of accumulated depreciation.

Depreciation on property, plant and equipment is calculated using the following methods:

Over buildings - using a uniform method;

For other items of fixed assets - 15% of the balance sheet value at the end of the previous year using the diminishing balance method.

Depreciation is not charged on land, construction in progress, fixed assets transferred to conservation.

For tax purposes, depreciation is not recalculated, since BEKPR LLC has income tax benefits as a manufacturer and processor of agricultural products.

Income in LLC "BEKPR" is recognized on the basis of invoices upon shipment of products to the distribution network.

The cost of bakery products and sausages is determined by the order method.

The cost of grain production, raising livestock for meat is determined by the actual costs incurred during the growing season and harvesting or the period of raising livestock before slaughtering.

In the course of the study, it was found that when accounting for accounts receivable on accounts receivable, the bad debt reserve method is not applied, which is provided for by the international principles of prudence (prudence) and comparability. It was also found that the explanatory note is drawn up in a very concise version and does not disclose all the points of the applied accounting policy.

The financial statements include the following reports:

Form No. 1 - Balance sheet;

Form No. 2 - Profit and Loss Statement;

Form No. 3 - Cash flow statement;

Form No. 4 - Statement of changes in equity.

The property of BEKPR LLC consists of circulating (current) and non-circulating assets. In the working chart of accounts for accounting for current assets, the following accounts are provided:

1110 Cash on hand at the enterprise;

1210 Cash on the current account with the bank;

1410 Accounts receivable;

1,500 Receivables from other transactions, including:

1,520 receivables from employees and directors,

1,530 tax receivable paid in advance.

1600 Inventories;

1700 Stocks of auxiliary materials;

1800 Advances issued.

2.2. Accounting and distribution of production overheads

Most decisions about cost allocation are made based on causation and benefit criteria. There are also other criteria, which include equity, the ability to bear costs.

There are three methods of cost redistribution in management accounting.: method of direct cost allocation, sequential and system of linear equations 9 .

Direct cost allocation methodis the most common, its essence lies in the distribution of the costs of each auxiliary unit of the enterprise only on the basis of service consumers. The advantage is that there is no need for a preliminary estimate of the volume of counter services. The disadvantage of this method lies in the inability to assess the volume of services provided to each other by auxiliary units.

Redistribution methodtakes into account the counter services rendered by some auxiliary departments of the enterprise to others. However, this method is also not without its drawbacks, namely, the difficulty in choosing a service unit, from which it is more correct to start the cost allocation procedure.

System of linear equations method- the method of distribution of counter services based on the solution of a system of linear equations. This method is the most convenient to use.

The basis for the allocation of costs remains unchanged over a long period and is an element of the accounting policy of the enterprise.

Let's consider the stage-by-stage distribution of overhead costs.

At the first stage, the resulting overhead costs are posted to the accounts:

on account 7170 " Other production costs»Production costs are formed;
on account 1700 "Auxiliary production" auxiliary expenses;
on the "General expenses" account, general business expenses, which are subsequently distributed according to the proceeds for production and trade separately;
on the "Selling expenses" account, trading costs are formed.

At the second stage, an analysis of general business expenses is drawn up and a result is summarized.

On the third, it is necessary to summarize the proceeds obtained as a result of the operation of the mill, trade and auxiliary production, i.e. we find the total revenue of the entire enterprise.

At the final, fourth stage, the amount received is distributed among the accounts.

Write-off liquidated fixed assets

Fixed asset value accounts (2130-2190) and accumulated depreciation accounts (2193-2199) are closed, and the residual value (if any) is written off to account 9590 "Other non-operating expenses":

2. Expenses for the liquidation of fixed assets are reflected in the debit of account 9590 "Other non-operating expenses" in correspondence with accounts "Other short-term liabilities", "Accounts payable", etc., for example:

3. The cost of materials received from liquidation is credited to the debit of account 1700 "Auxiliary materials" in correspondence with account 9590 "Other non-operating expenses"

Write-off of costsold fixed assetsis done as follows:

Proceeds from the sale of fixed assets are reflected in the debit of account 1100 "Cash on hand", 1200 "Cash in the bank", 1590 "Other receivables" in correspondence with account 9190 "Other non-operating income" and account 3430 "VAT payable":

2. Accounts for accounting for the cost of fixed assets (2130-2190) and accumulated depreciation accounts (2193-2199) are closed, and the book value is written off to account 9590 "Other non-operating expenses"

3. Expenses incurred in the sale of fixed assets (delivery to the buyer, dismantling, etc.) are reflected in the debit of account 9590 "Other non-operating expenses" in correspondence with accounts "Other short-term liabilities", "Accounts for payment", etc.

4. If as a result of disposal there is a profit, then it is reflected in account 9190 "Other non-operating income"; if a loss occurs as a result of disposal, it is reflected on account 9590 "Other non-operating expenses"

When using complex accounting entries, the number of entries is significantly reduced:

D-t 1100 "Cash on hand" or 1200 "Cash in the bank"

D-t 1590 "Other receivables"

D-t 2193-2199 "Accumulated depreciation"

D-t 9590 "Other non-operating expenses" (if the result of disposal is a loss)

K-t 3430 "VAT payable"

K-t 2110-2190 "Fixed assets"

K-t 9190 "Other non-operating income" (if the result of disposal is profit)

The asset is considered liquidated and is written off the balance sheet in the reporting period in which the fixed assets are physically liquidated or deemed unsuitable for further operation and can be sold at the price of scrap and other waste. The residual value and costs of the liquidation of assets are reflected in the financial statements as losses from the liquidation of property, plant and equipment. The cost of the potential sale of materials received from the liquidation is taken into accountas other materials.

In accordance with IFRS, an organization's expenses are recognized as a decrease in economic benefits as a result of the disposal of assets and (or) the occurrence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by the decision of participants (property owners).

The expenses of the organization do not include the costs associated with the implementation of capital and financial investments, and non-production costs 11 .

The expenses of the organization, depending on their nature, conditions of implementation and the direction of the organization's activities, are divided into the following types:

expenses for ordinary activities;
other expenses, which, in turn, are subdivided into:

Operating expenses,

Non-operating expenses,

Extraordinary expenses. 12

Other expenses are not accounted for in production cost accounting accounts. Ultimately, they are reflected in the accounts "Other income and expenses" and "Profit and loss" (in more detail in the chapter "Profit and loss accounting").

Expenses for ordinary activities are expenses associated with the manufacture and sale of products, the performance of work and the provision of services, as well as the purchase and sale of goods:

costs directly related to the production of products (works, services);
preparation costs for the production of products;
maintenance costs of the main production process;
production management costs;
costs of training and environmental protection measures;
costs of contributions to state extra-budgetary funds;
costs of restoring fixed assets and intangible assets in the form of depreciation charges;
taxes, fees and mandatory deductions made at the expense of the cost in accordance with the law;
selling and administrative expenses.

In organizations, the subject of activity of which is the provision for temporary use of their assets under a lease agreement and rights arising from patents for inventions, industrial designs and other types of intellectual property, as well as participation in the authorized capital of other organizations, expenses for ordinary activities are considered expenses, the implementation of which is associated with the specified activities. If these types of activities are not the subject of activities of organizations, then the costs of these activities are related to operating costs.

In accordance with the Tax Code of the Kyrgyz Republic, expenses are recognized as justified and documented costs and losses incurred (incurred) by taxpayers (clause 1 of article 252).

Of great importance for the correct organization of cost accounting is their classification. Expenses for ordinary activities are grouped according to their place of origin, types of products (works, services), types of expenses, economic role in the production process, composition, method of inclusion in the cost of production, frequency, participation in the production process, in relation to production volume, composition production cost and efficiency.

At the place of origin, expenses are grouped by production, workshops, sections and other structural divisions of the organization. Such a grouping of costs is necessary for organizing management accounting and determining the production cost of products.

By types of products (works, services), costs are grouped to calculate their cost.

Cost types are grouped by cost elements and cost items.

In accordance with IFRS (clause 8), the expenses of the organization for ordinary activities are grouped according to the following elements:

material costs (minus the cost of returnable waste);
labor costs;
deductions for social needs;
depreciation;
other costs (postal and telegraph, telephone, travel expenses, etc.).

This grouping is uniform and obligatory for all sectors of the national economy. The grouping of expenses by economic elements shows what exactly was spent on the production of products, what is the ratio of individual elements of expenses in the total amount of expenses.

The data obtained by the elements of expenditures is necessary when developing business plans, the volume of purchases of material resources, determining the wage fund and the amount of depreciation, organizing cost control, calculating indicators of the efficiency of resource use (material consumption, labor intensity, etc.) and a number of other indicators ... 13

It should be noted that when taking into account the costs of their elements, the allocation of costs for finished production (work, services) and work in progress is not carried out.

The Tax Code of the Kyrgyz Republic (Article 253) provides for the allocation of not five, but four elements of expenses:

material costs;
labor costs;
the amount of accrued depreciation;
other expenses.

Current assets also include inventories that are considered less liquid assets than cash and receivables. Inventories in BEKPR LLC are accounted for in the active accounts of the 1600 group in accordance with IFRS 2 "Inventories" with subsequent disclosures on the accounts:

1610 goods in warehouses,

1620 stocks of raw materials and basic materials,

1630 work in progress,

1640 finished products,

1700 auxiliary materials.

Until 2009, the inventory of BEKPR LLC included animals for growing and fattening, which, due to the transfer of accounting to the chart of accounts of 2002, are classified as biological assets and are accounted for as non-current assets.

Accounting for inventories in BEKPR LLC is carried out on account 1620 "Raw materials and materials" in the context of storage locations for each item separately in quantitative and total terms (see in the appendix the balance sheet for account 1620 for July 2014).

To account for inventories (hereinafter MPZ), the organization uses unified forms of primary documents presented in the table - primary documents used for accounting of inventories in LLC BEKPR (Table 2.1.).

Table 2.1

Primary documents for inventory accounting

Forms	Form name	Directions for use
M - 7	Acceptance of materials	It is used to register the acceptance of material assets that have a quantitative and qualitative discrepancy, as well as a discrepancy in the range with these accompanying documents of the supplier; compiled also upon acceptance of materials received without documents; is a legal basis for making a claim to the supplier, sender. The act in duplicate is drawn up by members of the selection committee with the obligatory participation of a financially responsible person and a representative of the sender (supplier) or a representative of an uninterested organization.
M - 11	Requirement-waybill	It is used to account for the movement of material assets within the organization between structural units or financially responsible persons. The waybill in two copies is drawn up by the materially responsible person of the structural unit, who hand over the warehouse as a basis for writing off the values, and the second - to the receiving warehouse for posting the values. The same waybills are used to register operations for the delivery to a warehouse or a pantry of the remainder from the production of unspent materials, if they were previously received on demand, as well as the delivery of waste and rejects. The waybill is signed by the materially responsible persons of the deliverer, respectively, and is obtained and handed over to the accounting department for accounting for the movement of materials.
M - 15	Invoice for the issue of materials to the side	It is used to account for the supply of material assets to the farms of its organization located outside its territory, or by parties to organizations, on the basis of contracts and other documents. The invoice is issued by an employee of the structural unit in duplicate on the basis of contracts, orders and other relevant documents and the recipient's presentation of a power of attorney to receive valuables, completed in accordance with the established procedure. The first copy is transferred to the warehouse as the basis for the issue of materials, the second - to the recipient of the materials.
M - 17	Material accounting card	It is used to record the movement of materials in the warehouse for each grade, type and size; is filled in for each stock list number of the material and is maintained by the financially responsible person (storekeeper, warehouse manager). Entries in the card are made on the basis of primary receipts and expenditures on the day of the transaction.

Accounting for the movement of inventory is carried out on a continuous system, i.e. receipts and expenditures are recorded directly on the accounts of inventory holdings.

The release of inventory for production and sale is estimated using the weighted average cost method.

The purchase of materials is reflected at the Debit of account 1620, 1790 from the credit of accounts 1110 - for purchases for cash and from the credit of account 3110 - for purchases from suppliers with subsequent payment.

Account 1630 in BEKPR LLC keeps records of agricultural expenses for processing agricultural land and growing beets, corn, alfalfa, wheat with direct and indirect costs (see in the appendix the balance sheet for account 1635 Agricultural Expenses; Agricultural Land).

The processing of raw materials is carried out by Rikha LLC, which is supplied with raw materials for the production of sausages.

LLC "BEKPR" has a mill and two bakeries for the production of bakery products, a pig farm and a sausage shop. Since 2013, the company has been producing and selling dairy products.

Refining costs include costs directly attributable to units of product manufactured:

Direct costs of labor and materials,

Fixed overhead production costs,

Variable production overhead,

Other costs.

The costs directly related to the production of finished products are:

Labor costs and social security contributions for workers in primary production
Allocated fixed and variable production overheads.

The fixed production overhead costs of BEKPR LLC include:

Depreciation of production equipment,

Equipment operating costs,

Labor costs and social insurance contributions for employees of the administrative apparatus and workers in auxiliary production facilities,

Expenses for payment of utilities and communication services.

The enterprise refers to the variable production overhead costs the wages of technological workers.

The costs of producing products are reflected in accounting entries, for example, for peasant bread per 100 kg of output:

Debit account "Work in progress" 1630 1542.96

Credit account "Salary" 3520 200.00

Credit account "Contributions to social insurance" 3530 34.50

Credit account "Basic materials" 1620 308.46

Credit of the account "Overhead costs" 1639 1000.00

The release of finished products from production is reflected on account 1640 "Finished products", for example, bakery products and dairy products for December 2013 (see in the appendix the balance sheet for account 1640 "Finished products"):

Debit 1640 "Finished products" 2612.1 thousand soms

Credit 1630 "Work in progress" 2612, 1 thousand soms

There is no balance on the "Work in progress" account at the end of the year.

Analytical accounting for account 1640 "Finished products" is carried out at storage locations and certain types of finished products.

The release of products for sale at the actual cost is reflected (for example, bakery products):

Debit 7100 "Cost of goods sold" 296956.1 thousand soms

Credit 1640 "Finished products" 296956.1 thousand soms

Periodically, and obligatory as of December 31, LLC "BEKPR" carries out an inventory of the remaining stocks, which is drawn up by inventory and collation statements and an act based on the results of the inventory.

In the production of crop products, the main weight is the production of wheat and alfalfa. This is due to the presence in the farm of a subsidiary farm for raising pigs and cows, as well as for the production of fodder for the farm's own needs.

LLC "BEKPR" produces about 35 types of bakery products: "Borodinsky", "Rye", "Krestyansky", loaves, buns with jam, cheesecakes, gingerbread, etc. And from sausages - about 30 names of sausage, liverwurst, raw smoked pork ribs, etc. Since 2013, the enterprise has launched a dairy plant, produces milk of various fat content, kefir, cream, sour cream and also sells it in various stores in Bishkek.

2.3. Ways to improve the efficiency of the enterprise

In the course of the study, according to the balance sheet and profit and loss statement of the property and financial condition of BEKPR LLC for 2011 -2013, in the first - third questions of the third chapter of the course work, an analysis of the dynamics and structure of society's assets and the sources of their formation was carried out, special attention is paid to analysis of the structure of current assets. Also, assets were analyzed according to the degree of liquidity and liabilities according to the maturity of liabilities. The assessment of the company's solvency is carried out on the basis of the liquidity indicators of the enterprise. The indicators of the financial stability of the enterprise are calculated based on the analysis of the ratio of equity and debt capital. In addition, the indicators of profitability of LLC "BEKPR" for 2011 - 2013 were considered. The analysis data indicate that the company operates profitably, although in 2013 there is a decrease in sales volumes and an increase in the cost of goods sold, and, as a result, a decrease in all profitability indicators.

Over the years under study, the balance sheet currency has increased, which indicates an increase in both assets and the sources of their formation. In particular, non-current assets in the assets of the balance sheet increased, and current assets in 2013 compared to 2012 decreased. In the liabilities of the balance sheet in 2013, as a result of the accrual of dividends due to retained earnings, short-term liabilities increased sharply and equity capital in terms of retained earnings decreased. The capital contributed by the owners of the company is only 500 soms, which is in accordance with the legislation, but an extremely low amount. There is also no reserve and additional capital in the company. There are no short-term and long-term loans and borrowings. The positive aspects of the company's activities are:

Profitable activity for the study period;

Increasing production capacity (fixed assets and biological assets);

Development of a new direction of activity, namely the production and sale of dairy products in 2013;

Lack of long-term commitments;

Distribution of retained earnings for dividends.

At the same time, it is necessary to note the negative facts that were clarified as a result of the study:

Decrease in cash inflows in 2013 compared to 2012;

Decrease in proceeds from the sale of products in the same period;

Increase in the cost of goods sold;

Increase in mortgages on accounts payable and on payment of dividends;

Low level of contributed capital of the founders;

Decrease in profitability and cost recovery indicators;

Decrease in liquidity indicators, and hence in the company's solvency;

Growth of accounts receivable from buyers on accounts receivable;

The noted facts had an impact on the instability of the financial position in the reporting period, a decrease in the liquidity of the balance sheet and the solvency of the company. Based on the shortcomings identified during the study in the financial and economic activities of the company in order to improve the indicators of financial condition and solvency, it is possible to recommend:

Strengthen the work of staff in terms of collection of accounts receivable on accounts receivable;

Increase the share of the contributed capital of the founders in the balance sheet liability;

Form the reserve capital of the company in accordance with the law.

Distribute profits for the payment of dividends on a more regular basis and not in full;

Direct efforts to increase sales income (revenue);

Analyze the cost of goods sold and operating costs in order to reduce them;

Seek new markets for food products, which is especially important at the present time - the time of the entry of the Kyrgyz Republic into the Customs Union and the EAEU.

Conclusion

The issues considered in the work allow formulating a number of general conclusions and provisions.

The main generalizations include the following conclusions:

1. The procedure for conducting accounting management accounting in terms of overhead costs is regulated by such regulatory and legal acts as the Law "On Accounting", the Civil Code of the Kyrgyz Republic, the Tax Code of the Kyrgyz Republic, as well as provisions on accounting. But the most important and necessary for any type of activity is the Chart of Accounts and Instructions for its use, since on their basis, the organization approves a working chart of accounts of accounting, containing a complete list of synthetic and analytical accounts required for a given enterprise.

These expenses are reflected in the following accounts: "Main production", "Auxiliary production", "General business expenses", "Sales expenses".

The most important account is considered to be "General business expenses", because it is a collective and distribution transaction account. It summarizes information on costs for management needs that are not directly related to the production process (repair costs, rent).

Distribution of overhead costs is very important for all enterprises, because with the help of distribution, you can evaluate the performance for a certain period of a department; distribution is also used to calculate and analyze the profitability of products or customers, etc.

Allocation of costs - allocation of costs for specific purposes. Thus, management accounting of overhead costs is necessary for effective cost regulation, defining the areas of responsibility of managers, solving problems with identifying the most accurate indicators of the cost of production, if the need arose. Analysis of these costs allows you to find out what costs are due to which decisions, what can be undertaken in the future in relation to them, and also solve a number of issues: the choice of profitable orders, planning of future directions of activity, distribution and minimization of costs, budgeting and analysis of deviations.

List of used literature:

Law of the Kyrgyz Republic "On Accounting" Bishkek. 04/29/2002, No. 76
Tax Code of the Kyrgyz Republic. Bishkek. 17.10. 2008 No. 230 (with changes and additions)
International Financial Reporting Standards. Bishkek 2001.
Chart of accounts for accounting of financial and economic activities of entities and guidelines for its application. Bishkek, 2002
Regulation "On document circulation in accounting" of the Kyrgyz Republic. - B., 2002
Regulations on the organization of accounting in budgetary institutions (approved by the Government of the Kyrgyz Republic of May 16, 2011 No. 224)
Methodological recommendations for the transition to accounting in accordance with the requirements of IFRS 2011.
Regulatory and methodological materials on accounting and reporting in the Kyrgyz Republic. Bishkek: Ministry of Finance, 1997 - 2003.
Management accounting-associate professor Suranayev T.J for the UAAA; KRSU Bishkek, 2008
Israilov I.M. Financial accounting. - B., 2012
Sulaimanova U.S. Accounting policy of assets. - B .: 2010 -172p. (textbook) authors: Sulaimanova U.S. and etc.
Financial Accounting Tutorial 1. PBA. Bishkek, 2003 G
Tutorial : Accounting financial statements-associate professor Zenina E.V. Bishkek, 200 8g
Financial Accounting Tutorial Osmonova A. A Bishkek, 2003
Financial Accounting - 1 Study Guide. BFEA, Chamber of Accountants and Auditors of the Kyrgyz Republic. Bishkek 2003 G . - 360p.
Financial accounting 1: Tutorial. - B., 2008
Financial Management Study Guide Pragma Corporation
Sheremet A.D., Saifulin« Financial analysis methodology"- M, 2003

1 Baisalova Zh.M. Financial reporting. - B., 2004 –S. 121.

2 Bezrukikh P.S. "Fundamentals of Accounting" Bezrukikh PS Moscow 2004. -S.342

3 Berstein L.A. Analysis of financial statements: practice and interpretation: Per. from English / Scientific. Ed. translation by Corresponding Member I.I. Eliseeva. Ch. series editor prof. Ya.V. Sokolov. - M .: Finance and statistics, 1996. -624p .: ill. - (Series on Accounting and Auditing)

4 Brykova N.V. Industrial accounting. - M., 2006 –S. 63.

5 A. V. Zonova Accounting and analysis. - M., 2009 .-- S. 82-83.

6 Needles B. et al. Principles of accounting / B. Needles, H. Anderson, D. Caldwell: Trans. from English. / Ed. I'M IN. Sokolov. - 2nd ed., Stereotype. - M .: Finance and statistics, 1997. - 496 p .: ill. - (Series on accounting and audit). –S. 124.

7 Financial Accounting Tutorial 1. PBA. Bishkek, 2003. –S. 125.

8 Financial Accounting - 1 Study Guide. BFEA, Chamber of Accountants and Auditors of the Kyrgyz Republic. Bishkek 2003 .-- P. 360.

9 Financial accounting - textbook, authors: V.F. Paliy, V.V. Paliy, Moscow I.D. FBK - Press, 2001 –S. 1122.

10 Baisalova Zh.M. Financial reporting. - B., 2004 .-- S. 127.

11 Baisalova Zh.M. Financial reporting. - B., 2004 –S. 120.

12 Accounting / Pract. booze allowance. accounting, finance and taxation: Engineering and Consulting Company "DeKA", 2001 - p. 74-75.

13 Zhukov V.N. Accounting for distribution costs: Textbook. - M .: Finance and statistics, 2002. –S. 47.

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Absolutely all organizations deal with overhead costs. At the same time, they are practically not regulated by law. Learn what these estimated overheads are and what they include.

Concept

Overhead costs are additional to the basic costs of the enterprise for the management, organization and maintenance of production. They are not directly related to the main production of goods or the provision of services, nor are they included in the cost of materials and labor costs.

Overhead costs in this way - not related to the main production process - ensure the normal functioning of the company or enterprise.

Overhead costs are included in the cost of goods, the costs of production and circulation, but not directly, and indirectly - in proportion to the cost of materials and raw materials, the amount of wages, and so on.

As a result, the estimated overhead costs can be called associated costs that are not directly transferred to the cost of each unit of production, but are subject to distribution.

Composition of overhead costs

As a general rule, overhead costs include:

Maintenance of buildings and structures, equipment.
Salaries, training and maintenance of the administrative and managerial staff.
Maintenance costs of vehicles on the balance sheet of the company.
Rent for an office, warehouse of products.
Costs incurred due to downtime, the appearance of defective products.
Costs associated with the operation and maintenance of fixed assets.
Advertising costs, consulting services.
Office maintenance, payment of utilities.
Main production service.
Expenses for communication services (telephone, Internet), etc.

Overhead costs can be broadly grouped into four groups:

The cost of production and its organization.
The costs of maintaining the management staff.
Staff service.
Non-production costs.

KEEP IN MIND

In the Tax Code of the Russian Federation, overhead costs are not indicated as such, their structure is not defined. The same goes for accounting - there is no differentiation of overhead costs here. Overhead costs are legally fixed only in such areas as construction, science, medicine. Ordinary companies set their own list of such costs.

For example, in sales organizations, these costs usually include costs associated with packaging, storage, transportation and marketing of products.

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The amount of overhead costs is indicated in budget plans and estimates, as well as in own budget plans of structural divisions.

How to calculate overhead

The company independently determines the parameters in proportion to which the overhead costs will be distributed.

When planning overhead costs, several methods are usually used:

1. Determination of overhead costs in proportion to the wages fund of workers employed in the main production, as part of direct costs.

This method is suitable for organizations that have a significant number of employees in the main production (mainly the use of manual labor).

EXAMPLE

The company is engaged in cargo transportation. The wage fund is 10 million rubles. in year. In 2018, overhead costs, according to the plan, had a coefficient of 85% and, accordingly, amounted to 8.5 million rubles. In the same year, the company made staff reductions in order to reduce overhead costs by up to 60%.

Consequently, in 2019, while maintaining the payroll for the workers of the main production, the norms of overhead costs will amount to 6 million rubles.

2. If the production process in the company is largely automated, it is more expedient to distribute costs in proportion to the volume of sales or machine-hours.

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