In construction, the costs of organizing and managing production are called overhead.

Overhead costs, depending on their relationship with production volume, are divided into fixed and variable.

The list of overhead costs includes 5 sections:

Administrative expenses

Costs of servicing construction workers

Costs of organizing work on construction sites

Other overheads

Costs taken into account in the standards.

Each group of overhead costs includes individual items, the size of which during planning is determined either by calculation, taking into account the expected volume of work, or on the basis of the norms and regulations established for a given cost in this area or developed by the organization itself. When planning, a limit on overhead costs is established for a given organization, which is determined based on the cost of construction and installation work expected to be performed in accordance with the concluded contracts and the overhead costs established as a percentage in these contracts.

Accounting for actual expenses incurred is carried out within the reporting period. At the end of the reporting period, overhead costs must be distributed among all objects under construction, in accordance with the selected distribution base, thus overhead costs fall into the actual amount of construction and installation work performed for each object. This sequence in accounting for overhead costs allows you to determine the total amount of overhead costs actually incurred during the reporting period and compare it with the established limit and generate a complete construction and installation work for each object. Accounting for overhead costs associated with construction work, production of products and provision of services by auxiliary production, as well as with the performance of non-capital work is carried out on account 26 “General business expenses”.

Accounting for overhead costs associated with the maintenance of non-production facilities is carried out on account 29. Analytical and synthetic accounting of overhead costs on account 26 is carried out in ZhO-10s for accounting for overhead costs of the main production separately, and auxiliary production - separately.

Overhead costs of the main production are taken into account in ZhO-10s in accordance with the list of overhead costs. Costs for Dt26 are reflected monthly on the basis of data from development tables - statements, sheets - transcripts, in correspondence with the following accounts Kt 02 (rt7), 05 (v17 "Statement of accounting for equipment and wear and tear"), 10.12 (v10s), 13 (rt8), 23 (ZhO10s), 25 (ZhO10s), 31 (ZhO10s), 70 (rt5s), 71 (based on primary documents and other ZhO), 69 (rt5s).

All wage payments made to non-budgetary social funds in construction are included in overhead costs.

Salaries accrued by the AUP are included in section I.

Accruals for wages of production workers are included in Section II.

Accruals on the wages of production workers, wages that are included in Section III, are included in the same section.

One posting to social media Funds Dt26 Kt69.

At the end of the month, the results for each item from transcript sheets or other ZhO, statements, Rt are entered in ZH-10s in the “general business expenses” section.

There are some features of reflecting the costs of maintaining AUP, which are included in the composition of sections and teams (line personnel).

The costs of maintaining the AUP are directly charged to the cost accounts of these departments, i.e. Dt20.30.

Structural divisions may monthly or quarterly transfer funds to the organization’s management apparatus for its maintenance in the amounts approved in the estimates of overhead costs for the main production.

Contracts concluded between the customer and the contractor may provide for services provided by the first (customer) to the second (contractor) that are carried out in excess of the established estimated cost.

The contractor must reimburse the customer for the cost of additional services from overhead expenses. The same procedure exists in the relationship between the general contractor and the subcontractor; as a rule, this is associated with costs directly arising during the performance of work on construction sites, i.e. the costs of improvement and maintenance of the cabins are borne by the contracting organization, and the subcontractor reimburses the expenses.

In this regard, at the end of the month, overhead costs reimbursed by the subcontractor to the general contractor are reflected as Dt60 Kt26. Every month, in order to correctly determine the work performed, the subcontractor assigns the amounts of deductions stipulated in the contract to Dt26 Kt62.

At the end of the month, overhead costs of the main production are written off from Kt26 to Dt accounts in accordance with the selected methodology for accounting and distribution of overhead costs, i.e. Accounting policy.

At the 1st stage, they are distributed between auxiliary and main production (in the part that could not be attributed directly to the overhead costs of auxiliary production Dt26 (auxiliary production account) Kt26 (main production account).

The distribution of overhead costs is carried out by distributing them between construction projects:

Overhead costs are attributed to management (fixed part), at the end of the month they are attributed to sold products, then first the entry Dt46 Kt26b is made and the remaining amount is distributed between construction projects, i.e. Dt20 Kt26.

All overhead costs for main production are written off from Kt26 Dt20.

Distribution between construction projects is carried out in proportion to the direct costs recorded for each construction project in a given reporting period.

Thus, in ZhO-10s from the section “General business expenses” they fall into the section “Main production”.

If an organization carries out activities related to the procurement of materials and bringing them to a state of readiness for use, then the so-called procurement and storage costs are taken into account on account 44 “Distribution costs”, and not on account 26 (construction division of UBTK).

"Financial newspaper", 2007, N 41

Overhead costs are usually understood as the amount of expenses an organization has to pay for the creation of general production conditions, its organization, management and maintenance. In addition, overheads include administrative and management expenses of the organization.

The division of costs into basic and overhead is based on their participation in the process of production of products (works, services). In contrast to basic expenses, the purpose of overhead expenses is to ensure the normal course of production and economic activities. According to some experts, overhead costs do not directly constitute the substance of the product, they are necessary for its production and sale, for managing the organization, and according to others, each unit of production benefits from these costs.

With the development of production and technological processes, the share of overhead costs in the total total costs of the enterprise increases. At the same time, there are both overhead costs generated in individual production departments, and overhead costs related to the entire enterprise as a whole: depreciation of industrial buildings, utility bills, rent, costs of maintaining the management apparatus, etc. The main feature of overhead costs is the impossibility of them accurate assessment in the production of a product, since it is impossible to trace the participation of each specific element of indirect costs in the production process of specific types of products (works, services). Unlike basic expenses, overheads can also occur when the production process is stopped. At the same time, since overhead costs include many different costing items that are dissimilar in behavior and cost levels, they are much more difficult to control than direct variable costs.

Overhead costs arise at various levels of the organization and have a significant impact on the cost of products (works, services), and therefore require special attention from management personnel.

In order to generate management information about overhead costs, it is necessary to analyze their content and features. So, first of all, they are divided into production and non-production. Manufacturing overhead costs are directly related to the maintenance and organization of the production process; non-production overhead costs arise as a result of maintaining the administration of the organization and the general management of its activities (Table 1).

Table 1

Classification of overhead costs in relation to production

Production invoices expenses

Non-production invoices expenses

fixed assets materials for operational purposes 4. Repair costs and maintenance equipment 5. Lease payments for the use of the rented equipment 6. Remuneration 7. Security costs sanitary and hygienic and living conditions 8. Freight costs and material handling within the production sites 9. Maintenance costs fire and security guards 10. Losses from shortages materials 11. Operating costs associated environmental funds appointments 12. Other expenses

funds 3. Repair and technical maintenance of fixed assets administrative and managerial appointments 4. Design costs works 5. Expenses for conducting experimental experimental work, and samples 6. Entertainment expenses and audit services 8. Amortization of intangibles assets 9. Expenses for communication services 10. Bank interest loans within established rate 11. Advertising expenses within the established rate 12. Stationery expenses goods 13. Maintenance costs buildings occupied administrative and managerial staff 14. Preparation costs and retraining 15. Maintenance costs official car motor transport 16. Maintenance costs private security 17. Other expenses

Production overhead costs can arise at the level of a site, workshop, and also simultaneously relate to several structural divisions of the organization or costing objects. General accounting of these costs does not take into account the places and conditions of their occurrence, does not allow generating information about the real cost, and distorts data on production costs for specific types of finished products (works, services).

By their nature, production overhead costs are largely considered to be conditionally variable, which means it is possible to trace their cause-and-effect relationship with specific costing objects. Non-production overhead costs for the most part are not directly dependent on the business activity of the organization and are constant or semi-constant (Table 2).

table 2

Classification of overhead costs in relation to the business activity of the organization

Conditional variables overheads

Permanent and conditionally permanent overheads

1. Remuneration general production personnel 2. Support costs materials 3. Fuel and energy costs for operational purposes 4. Repair costs and maintenance equipment 5. Freight costs and material handling within the production sites 6. Losses from shortages materials 7. Operating costs associated with maintenance and operation environmental funds appointments 8. Other expenses

1. Depreciation of production fixed assets 2. Depreciation of office capital funds 3. Amortization of intangibles assets 4. Lease payments for the use of the rented equipment 5. Administration salaries and general business personnel 6. Contributions to the reserve for major repairs of major funds 7. Consulting costs and audit services 8. Preparation costs and retraining 9. Expenses for conducting experimental experimental work, production and testing of models and samples 10. Maintenance costs fire and security guards 11. Expenses for communication services 12. Maintenance costs official car motor transport 13. Security costs sanitary and hygienic living conditions 14. Advertising expenses 15. Entertainment expenses 16. Other expenses

When calculating costs, it is necessary to ensure the correct organization of accounting for overhead costs by place of occurrence and management levels (responsibility centers), i.e. build a system of analytical accounting of indirect costs. Thus, the main production workshops, various service departments and auxiliary workshops can act as places where production overhead costs arise. In addition, as a rule, there are general factory overhead costs related to production as a whole (depreciation of industrial buildings, their maintenance and repairs, costs of labor protection measures, etc.). As for accounting by responsibility centers, when organizing it, it is necessary to distinguish between overhead costs of a semi-variable and constant nature. Responsibility for the level of semi-variable overhead costs rests with the managers of specific departments in which they are formed, based on the standard values ​​of these costs accepted in the organization.

Fixed overhead costs can be of two levels. Thus, some of them occur due to the start of production activity itself - they are usually called fixed production costs at fully loaded production capacity (depreciation of fixed assets, property tax, rent for production space, etc.). Other overhead costs may vary from year to year depending on management decisions made. These expenses are called discretionary fixed expenses. These include advertising costs, salaries of management personnel, scientific research, entertainment expenses, etc. Thus, fixed overhead costs are either unregulated (depending only on external factors), or their level is planned for a certain period in the form of limited amounts for various purposes (Table 3).

Table 3

Classification of fixed overheads

Fixed overhead at full load production capacity

Discretionary constants overheads

1. Depreciation production core funds 2. Depreciation of office fixed assets 3. Depreciation intangible assets 4. Lease payments for the use of the rented equipment 5. Maintenance costs fire and security guards 6. Contributions to the reserve for major repairs fixed assets 7. Other expenses

1. Administration salaries and general business personnel 2. Preparation costs and retraining 3. Expenses for conducting experimental experimental work, production and testing of models and samples 4. Consulting costs and audit services 5. Expenses for communication services 6. Expenses for the maintenance of official passenger vehicles 7. Security costs sanitary-hygienic and household conditions 8. Advertising costs 9. Entertainment expenses 10. Other expenses

To evaluate inventory, determine the financial result of sold products, as well as to make management decisions based on information about the cost of production, it is necessary to correctly allocate overhead costs. At the same time, the selection and justification of bases for the distribution of overhead costs is one of the most difficult tasks of cost calculation. The distribution method chosen by the organization must take into account both the specifics of production of various types of products and the very specifics of overhead costs.

Traditional costing was built on the basis of three main schools of thought, which provided different solutions to the problems associated with the choice of methods for allocating overhead costs. It is customary to distinguish three directions of such distribution: accounting, mathematical-statistical and planning. The accounting direction is associated with the use of documented data on costs and their distribution based on one or another base. However, its main disadvantage is that by changing the distribution base, the accountant changes the value of the financial result. The mathematical and statistical direction is based on the construction of correlation coefficients between individual types of costs and the degree of employment or between consumption and output of finished products. Within the framework of the planned direction, the consumption of production factors is established in advance by volume, types and reasons, as a result, the entire accounting system is focused not on the past, but on the future.

It should be borne in mind that, no matter how the distribution of overhead costs is carried out, it will not be completely objective. Thus, it is not possible to accurately allocate overhead costs to specific products; they can only be attributed to a specific product through rough estimates.

In order to distribute overhead costs and calculate the cost of products (works, services), the most effective, in our opinion, is the methodology according to which all responsibility centers, which are their places of origin, are conditionally divided into main ones (directly involved in the production of products (works, services)) and auxiliary (servicing). As a result, the distribution of overhead costs between various products of the organization will be of a multi-stage nature. At the first stage, overhead costs of a general plant nature will be distributed between the main and auxiliary responsibility centers; then, together with the share of general plant indirect costs distributed to them, the overhead costs of auxiliary responsibility centers are distributed among the main ones; at the third stage, overhead costs are redistributed directly between the organization’s products, i.e. between specific calculation objects related to the main centers of responsibility.

In general, domestic production accounting is characterized by the use of a single distribution rate for the entire organization. At the same time, it is known that it is advisable to apply a single rate for the distribution of overhead costs only when the products of the activities of all divisions of the organization consume indirect costs in approximately the same proportions.

In addition, as a rule, when indirectly distributing overhead costs, distribution bases are selected that are directly related to the physical volumes of production, i.e. it is assumed that an increase in production volumes automatically leads to an increase in overhead costs, while in practice this relationship is not always observed. Certain activities related to maintenance and production management are not directly related to the volume of products produced. Thus, a number of overhead costs are of a constant nature (see Table 3). At the same time, it is known that fixed expenses practically do not respond to changes in the business activity of the enterprise, and conditionally variable expenses can often depend on indicators not related to volume. Thus, the use of traditional distribution rates will distort information about the cost of manufactured products. The higher the share of costs not directly related to production volume in the total overhead costs, the more distorted the information obtained based on the distribution of costs relative to the indicator associated with production volume will be. As a result, the management apparatus will not receive a clear idea of ​​the cost of a particular type of product (work, service).

In recent decades, large companies have begun to use operational management or cost management through the management of individual operations or individual types of activities to manage costs and profits. Operations that make up individual types of activities began to act as an intermediate object of calculation, and the overhead costs associated with them became the main object of accounting and analysis. The result of this was the emergence of the AV-costing system (Activity-based costing), which is one of the modern cost accounting and full cost calculation systems that meets the conditions of modern organizations with a high level of indirect costs. This system is based on the method of using bases in the distribution of overhead costs that are directly related to changes in their level (moreover, those that caused these costs). As a result, the part of overhead costs, which is of a conditionally variable nature, will be included in the cost of only those costing objects with which it is directly related. This requires systematization of information on the costs associated with each of the operations accompanying the production cycle, as well as supply and management processes.

D. e. Sc., professor,

head of department

financial management

and tax consulting

Russian University of Cooperation

G. Adamova

Senior Lecturer

State University of Management

Any business activity involves expenses. You have to spend money on diverse processes and purchases: those needed for the production of products, equipment maintenance, the purchase of raw materials, packaging, and transportation. And also on management processes, not to mention wages. This multifactorial nature of costs indicates the need for their classification and separate accounting.

Let’s understand the concept of “overhead costs”, clarify which costs can be attributed to them and how to recognize them in financial accounting.

What is overhead

Not all costs in production go directly into the product and can be directly planned and taken into account in it. Nevertheless, the funds spent turn out to be absolutely necessary for the manufacture of products, their sale, promotion on the market, as well as the management of the organization itself.

The most accurate definition of overhead would be “everything else.” This type of costs is not highlighted in a separate article in the Tax Code of the Russian Federation; naturally, their structure is not spelled out there either. In accounting, it is also impossible to clearly differentiate them.

NOTE! The law establishes a list of overhead costs only in the construction and medical industries. All other enterprises must determine overhead costs themselves, fixing this in their accounting policies.

Business concept overhead costs implies expenses that cannot be attributed directly to technological production processes, accompanying the production process, but not included in the cost of work and raw materials. Another name for overhead is indirect costs. They are indicated when planning and drawing up estimates for both the company as a whole and individual structural divisions.

Why consider overhead costs?

The most obvious goal is planning future profits, which are affected by all the costs incurred by the entrepreneur. But in terms of overhead costs, this poses certain difficulties. If potential direct costs can be calculated quite accurately for specific types of products, then it is quite difficult to determine how many indirect costs there will be and how they will be distributed when, for example, expanding production or signing a certain contract.

IMPORTANT! To adequately determine the cost of a product, it is necessary to take into account and distribute overhead costs in proportion to direct expenses - carry out production costing.

What is included in overhead costs

Indirect costs can be roughly divided into 4 main groups:

1. Management costs:
   • his salary;
   • money spent on training, certification and advanced training of management.
2. Contents: purchase of computers, office supplies, expenses for office needs, including communication services.
3. Expenses associated with the process of organizing production:
   • maintenance repairs of structures, buildings, premises, equipment belonging to the organization;
   • costs of transport owned by the company;
   • payment of rent for warehouse premises and/or office;
   • waste of money due to downtime, defects, etc.;
   • money that needs to be spent on maintaining fixed assets.
4. Personnel costs:
   • social tax contributions;
   • payments to social security and other funds;
   • equipment of household premises, canteens, showers, etc.
5. Non-production costs:
   • advertising expenses;
   • payment for consultations and examinations;
   • payment of utility bills, etc.

Where should overhead costs be indicated?

The company determines the norms for overhead costs independently, if they are not established by law (this is typical only for medicine and construction), and also if the actual overhead costs exceeded the estimated ones.

These data are usually noted:

• in design and estimate documentation;
• in budget planning;
• in individual planning of specific departments and structural units.

Overhead distribution options

Despite the difficulties of planning indirect costs, this is a necessary procedure that can be carried out in several ways:

1. The "working wage" method. If the main production employs a large number of workers, especially if manual labor predominates, overhead costs can be calculated in proportion to the wage fund for their labor.

EXAMPLE OF CALCULATION. Avtokoleso LLC is engaged in the transportation of goods. The staff wage fund is 8 million rubles per year. The overhead cost ratio in 2016 was 80%, that is, 6 million 400 thousand rubles. The company decided to reduce overhead costs, for which it fired several people. At the same time, the wage fund decreased by 20%, which means that the overhead costs of Avtokoleso LLC for 2017 can be planned in the amount of 5 million 120 thousand rubles.

2. Sales volume method It is advisable to use if automated processes predominate in the company. You can distribute income in proportion to machine hours.
3. Unit of production method applicable when direct costs significantly exceed indirect ones. Then we can take as a basis the ratio of direct costs per unit of goods to the total amount of direct costs.
4. Direct counting method. Indirect expenses are summed up separately for each expense item.
5. Combined methods applicable in large companies with a complex structure, where several types of products are produced. For example, you can account for manufacturing overhead on the payroll basis, and general overhead on the basis of unit cost.

Procedure for calculating overhead costs

Planning and accounting of all expenses, including overheads, is carried out in a certain order:

1. The total amount of costs for general business activities of the company is calculated.
2. The amount of overhead costs that will need to be included in the estimate per unit of each type from the product range is determined.

ATTENTION! It is necessary to take into account the legal limits for overhead costs for specific items and the standards defined by the company's internal regulations.

Legal limits regarding overhead costs

The law determines the composition and limits of overhead costs in the construction and medical industries.

Construction overhead

In this industry, overhead planning is especially important. An estimate is drawn up, which indicates the average costs for the industry, which are included in the cost of construction products or services.

Cost rationing in the construction industry is regulated by the Methodological Guidelines for determining the amount of overhead costs in construction, approved by the Resolution of the State Construction Committee of Russia (separately for regions of the Far North and equivalent regions). These documents define the coefficient that must be applied to determine overhead costs for a particular construction activity, and also clarify the scope of its application. The wage fund for construction workers is taken as the base. The distribution of coefficients is carried out according to the following main types of construction:

• industrial;
• agricultural;
• transport;
• housing;
• energy;
• related to water management;
• in the field of nuclear energy;
• restoration work;
• major repairs;
• other types.

FOR YOUR INFORMATION! Overhead costs according to standards in construction must be applied at the stage of drawing up estimates, as well as when paying for work performed.

Medical overhead

The standards and composition of overhead costs in the medical industry are regulated by Order of the Ministry of Health and Medical Industry of Russia No. 60 dated March 14, 1995. According to the provisions of this order, the cost of medical care must include all annual costs of a medical institution:

• salaries of all types of personnel, except medical personnel, with all accruals;
• expenses for the purchase of furniture, stationery, household goods (everything, except medicines and dressings);
• means for repairs.

The basis is the wage fund of medical personnel providing specific medical services, based on a coefficient of 1.5.

IMPORTANT! Typically, overhead costs are significantly higher in medicine than in construction.

In market economic conditions, it became obvious that the most manageable from the standpoint of searching for reserves for saving profit growth and profitability at an enterprise that has determined the production and sales program are gradually becoming not the main but overhead expenses. The results of research by domestic and foreign experts indicate that overhead costs in most industries are constantly increasing, both in absolute amount and relative 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 using the example of LLC "BEKPR"………………..

2.2. Accounting and distribution of production overheads…………………….

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

Conclusion

List of used literature

Introduction

Relevance of the topic.In market economic conditions, it has become obvious that the most manageable from the standpoint of searching for reserves of savings, profit growth and profitability at the enterprise that has determined the production and sales program are gradually becoming not the main ones, but overhead expenses.

A direction for improving the activities of management accounting can be the creation of unified accounting, budgeting and analysis of overhead costs.

Methods of accounting and analysis of overhead costs that are insufficiently adapted to market conditions negatively affect not only the current work of the enterprise, but also lead to the adoption of incorrect strategic management decisions.

The results of research by domestic and foreign experts indicate that overhead costs in most industries are constantly increasing, both in absolute amount and relative to the total cost of an economic entity. This is due to scientific and technological progress, the complication of management tasks and the corresponding increase in the number of management personnel, their qualification level, the widespread use of computers and modern means of communication in management, increasing requirements for the representativeness of offices, their equipment, etc. In the new conditions, there is a perceived 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 the expenditure of funds at the level of organizational management, and conducting analytical studies to optimize costs in this area.

This is the relevance of the course work, because management accounting of overhead costs is necessary for effective cost management, determining the areas of responsibility of managers, solving problems with identifying the most accurate indicators of the cost of manufactured products. And the more attention is paid to creating an optimal management accounting system for overhead costs, the more mobile the enterprise will become in market conditions and the more efficient the activities of the administrative apparatus.

Target The work consists of considering the features of accounting and distribution of production overhead costs.

In accordance with the goal, the following are decided tasks :

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

Object Research coursework is the enterprise LLC "BEKPR".

Subject course work accounting for production overhead costs.

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

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 Manufacturing Overhead

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

Expenses of an organization 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 decision of participants (owners of property) 1 .

To calculate the cost of manufactured products and determine the amount of profit received, costs are classified into: incoming and expired; direct and indirect; main and invoices; current and one-time, etc. The most important for management accounting are overhead costs, because they are caused by management functions, which in their nature, purpose and role differ from production functions. These expenses, as a rule, are associated with the organization of the enterprise’s activities and its management. In accordance with the method of allocating costs to a medium (costing object), overhead costs are indirect.

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

General (manufacturing) overhead costs are the costs of organizing, maintaining and managing production. They arise in production departments, sections, workshops, and factories. The purpose, nature and functional role of these costs directly related to production. Manufacturing overhead costs include the costs of maintaining and operating equipment, and general shop management costs.

The costs of maintaining and operating equipment include: depreciation of equipment and vehicles; routine maintenance and repair of equipment; energy costs for equipment; auxiliary production services for maintenance of equipment and workplaces; wages and social contributions for workers servicing equipment; expenses for in-plant transportation of materials, semi-finished products, finished products; other expenses associated with the use of equipment 2 .

General shop management costs consist of the following expenses: production management costs; costs associated with the preparation and organization of production; maintenance of the production department management apparatus; depreciation of buildings, structures, production equipment, maintenance and repair of buildings, structures, equipment; costs of ensuring normal working conditions; costs of career guidance and training.

What both groups have in common is that they: consist of complex articles; arise in production units; are planned and taken into account at the places where they occur; controlled by the budget-estimate method.

General (non-production) overhead costs are caused by management functions, which in their nature, purpose and role differ from production functions and production organization functions. These costs arise within the enterprise, i.e. this is administrative management costs; technical management costs; production management costs; expenses for managing supply and procurement activities; to manage financial and sales activities; labor costs: recruitment, selection, training of managers, training, retraining and advanced training; payment for services provided by external organizations; maintenance and repair of buildings, structures, equipment; 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) expenses are complex in nature (each overhead item includes expenses of various economic content: material costs, labor costs, depreciation of buildings, structures and equipment, etc.);

2) expenses do not create the physical or material basis of the product;

3) expenses 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. Classification of expenses

The classification of expenses must fully reflect all the characteristic features by which some cost items differ from others, and delimit their functional role, according to which each cost component performs a specific function. This approach allows us to more thoroughly determine the feasibility and effectiveness of the formation of cost items and their targeting 3 .

Let's consider the main classification characteristics of overhead costs:

1. 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 overhead costs can be classified on an item-by-item basis to provide more detailed cost information.
2. according to the level of control: controlled and uncontrollable overhead costs, the need to use such a grouping is determined by the fact that it regulates relations between managers of various levels of management and makes it possible to identify the culprit of cost overruns.

Overhead costs are the responsibility of a specific manager at one or another level of management. Examples include cost items such as the cost of running a business unit or maintenance costs associated with a particular stage of the production process.

1. by the method of inclusion in the cost center cost: primary and secondary overhead costs. Primary expenses are considered to be those that arise directly in the cost center (for the maintenance of the managerial personnel of the workshop). Secondary expenses are expenses that are allocated to the cost center as a result of the procedure for redistributing overhead costs or the procedure for calculating transfer prices (for transport services, for vehicle repairs). 4
2. by the method of reflecting costs in management accounting: actual, budget and distributed overhead costs. Actual expenses expenses that were incurred in the reporting period and reflected in management reports. Budget expenses expenses that accountants plan for the upcoming budget period. Actual and budgeted 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) overhead costs are overhead costs allocated to manufactured products during the costing process.

Since overhead costs serve as the object of forecasting, it is possible to distinguish predicted and projected overhead costs (non-productive payments, the share of overhead costs in the costs of defects, etc.).

In the standard-costing cost accounting system: under-allocated and over-allocated overhead costs. If the actual overhead costs are greater than the allocated ones, then under-allocated overhead costs arise. If the allocated overhead costs are greater than the actual ones, then reallocated overhead costs arise 5 .

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

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

In particular, it is possible to distinguish fixed overhead costs covered and not covered by marginal profit. Covered is the fixed overhead costs that have been covered by all levels of contribution margin. This grouping is used in those systems that use the concept of marginal profit. Unabsorbed overhead costs are fixed overhead costs that have not been absorbed by all levels of contribution margin. The use of this grouping has important practical significance. If fixed costs are covered, the organization makes a profit; losses are not covered.

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 point in time. This should be used for both budgeting and overhead analysis purposes.

Among variable and fixed overhead costs, periodic and permanent overhead costs can be distinguished.

Periodic ones are characterized by the fact that the moment of their occurrence is not constant. It is impossible to conduct correlation analysis or any other statistical method on them that makes it possible to distinguish between variable and fixed costs in their environment. An example would be travel expenses, entertainment expenses, expenses for workwear, renovation of an office building, 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 or irrational. The portion of costs attributable to unused production capacity will be considered wasteful overhead. Rational ones are expenses that bring economic benefit 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 6 .

1. within the framework of applying the functional cost accounting method (ABC method), i.e. overhead costs are grouped by type of activity (function), cost carriers for each activity are determined, and then functional overhead costs are written off to products through a cost driver system. The purpose of this method is to achieve accurate product costing results and cost management. In this case, short-term variable costs are distinguished (cost carriers are machine-hours, man-hours, direct materials, etc.), long-term variables (they do not change with the volume of production, but fluctuate under the influence of other factors in the long term) and fixed costs (do not depend on performance indicators for the period of time under review). In addition, there are costs that are traceable to specific types of products (for example, operating costs, which, using cost objects such as machine hours, are allocated to specific types of products) and costs that are not traceable to specific types of products (administrative expenses, insurance payments). .

The application of the considered grouping of overhead costs in practice will allow us to determine the cost of production with the greatest accuracy and reduce costs in the enterprise 7 .

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

In world practice, all non-production overhead expenses (general business expenses and selling expenses) are considered to be period expenses.

1. You can group overhead costs depending on the chosen management decision option. In this case, the costs described are divided into relevant and irrelevant. Relevant are overhead costs, which are influenced by the chosen alternative solution (most often they are taxes, expenses for intra-factory movement of goods). Irrelevant overhead costs remain unchanged for any of the selected management decisions (costs for maintaining buildings, structures, depreciation). It is not possible to provide a list of relevant and irrelevant costs for each specific case, so some costs may be relevant in one case and irrelevant in another.
2. depending on the stages of inclusion in the cost of production: overhead costs in production, overhead costs in commodity output and overhead costs in work in progress. Overhead in manufacturing refers to the portion of the gross costs allocated to the production of a product in the reporting period. Overhead costs in commodity output are part of the cost of finished products. Overhead in work in process (WIP) is the portion of costs written off to the cost of work in process as a result of the allocation of overhead costs between finished goods and (WIP).

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

Management accounting is a system that provides the generation of information for assessing and measuring costs and results, as well as for decision-making by managers at all levels of intra-company management 8 .

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 essence, production accounting is a system of consolidated cost accounting and calculation of product costs. At enterprises, production accounting functions are assigned to the cost accounting department in the accounting department. To maintain full-fledged management accounting, at least one more department is required, which can be called the department of management control and analysis. Within its framework, it is necessary to generate and summarize information for the purpose of making management decisions, conduct budgeting and conduct cost analysis.

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

• generation of timely, complete and reliable information about actual overhead costs occurring in the enterprise;
• budgeting and monitoring the implementation of overhead cost estimates;
• identifying reserves for reducing overhead costs;
• identification of factors influencing changes in individual elements of overhead costs;
• cost management and management decision-making (allocation 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 quickly make decisions. Using accounting, budgeting and analysis data, accountant-analysts identify alternative courses of action, collect and summarize information on them, and prepare recommendations to management. Ineffective decisions can lead to an unstable financial position of the organization, i.e. cause loss of product market, rising costs, unjustified increase in inventories, etc. An important criterion when making management decisions is unit costs. Overhead costs play a special role here.

In management accounting, the constant part of overhead costs is of particular importance, since it is the most effective way to reduce the cost of products. The main directions of action in this area include reducing the size of the administrative apparatus, reducing 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; implementation 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.

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

2.1. Brief description of the enterprise using the example of BEKPR LLC

The object of research in the course work is a Limited Liability Company, hereinafter referred to as BEKPR LLC.

LLC "BEKPR" is registered in the Alamudun State Tax Inspectorate, INN 02403200010154, OKPO 22447629. LLC "BEKPR" is a payer of land tax, income tax from employee salaries, insurance contributions to the Social Fund, and enjoys benefits in paying income tax, VAT and sales tax as a producer 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, Alamudun district, Beregovaya street 1 "a". BEKPR LLC 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 Partnerships and Societies”, the Labor Code, the Tax Code, as well as other norms of current legislation, international law, the Charter and the Founding Agreement.

The size of the authorized capital is 500 soms.

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

B - Bektursyn,

E - Erzhan,

K - Kadyrkul,

P - Pavel,

R - Rahman.

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

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

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

The management of the Company is carried out directly by the founder. Erzhan Amanovich Bazhanov was appointed General Director, exercising management in accordance with the Charter and Founding Agreement of BEKPR LLC.

Very important functions in production management at BEKPR LLC are performed by the accounting service. Accounting serves as the most important tool for management and control of economic activities, contributes to the generation of profit, and the proper use of monetary, material and labor resources.

The accounting department 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 supplies them with economic information about the results of work. Thus, it has a direct impact on the progress of production, supply and sales 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 BEKPR LLC to IFRS in 2009, the need arose 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 a chief accountant and his assistant, who, if necessary, performs the functions of a chief accountant. Both employees have higher economic education with a degree in Accounting, Analysis and Audit. The chief accountant and his assistant perform their duties in accordance with the developed job descriptions.

BEKPR LLC has an archive for storing accounting documents and reporting.

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

During the study, it was found that the order on the accounting policy and the developed accounting policy in written form, as such, are not available in BEKPR LLC. However, upon reviewing the organization of the accounting process, it was found that BEKPR LLC 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 methodological recommendations for its application, recommended by Resolution of the State Commission under the Government of the Kyrgyz Republic on Financial Reporting and Auditing Standards dated November 18, 2002 No. 28.

The reporting period for the preparation of financial statements begins on 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 used. The correspondence of accounts complies with the recommendations for using the chart of accounts. When assessing balance sheet items, compliance with the following requirements is ensured:

Mutual offsets between Asset and Liability items are not allowed

Balance sheet items are not collapsed

Numerical indicators are included in the Net assessment

Balance sheet items are confirmed by inventory results.

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

Inventories are accounted for using a continuous accounting system, i.e. The receipt and expenditure of inventory items is reflected directly in the accounts of inventory items of group 1600.

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

Depreciation on fixed assets is calculated using the following methods:

For buildings - using the uniform method;

For other fixed assets using the decreasing balance method, delivery is 15% of the book value at the end of the previous year.

Depreciation is not charged on land, unfinished construction, or 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 at BEKPR LLC is recognized on the basis of invoices upon shipment of products to the retail chain.

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

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

The study revealed that when accounting for receivables on accounts receivable, the method of reserving bad debts is not used, which is provided for by the international principles of prudence (foresight) and comparability. It was also found that the explanatory note is drawn up in a very condensed version and does not disclose all aspects 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 capital.

The property of BEKPR LLC consists of current (current) and non-current assets. The working chart of accounts for accounting of current assets includes the following accounts:

1110 Cash in the cash register of the enterprise;

1210 Cash in a bank account;

1410 Accounts receivable;

1500 Accounts receivable for other transactions, including:

1520 accounts receivable from employees and directors,

1530 accounts receivable for taxes paid in advance.

1600 Inventory inventories;

1700 Inventory of auxiliary materials;

1800 Advances issued.

2.2. Accounting and distribution of production overhead costs

Cost allocation is a problem that is inevitable for almost every organization; it is the direct attribution of collected costs to a specific object and the distribution of costs between various objects.

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

Most decisions regarding the allocation of costs are made taking into account cause-and-effect relationships and benefit criteria. There are also other criteria, which include fairness and the ability to bear costs.

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

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

Redistribution methodtakes into account counter services provided 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 begin the cost allocation procedure.

Method of system of linear equationsmethod of distribution of counter services based on solving a system of linear equations. This method is the most convenient to use.

The basis for allocating costs remains unchanged over a long period and represents an element of the enterprise's accounting policy.

Let's consider the staged distribution of overhead costs.

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

• on account 7170 " Other production costs» production costs are formed;
• on account 1700 “Auxiliary production” auxiliary expenses;
• on the “General business expenses” account, general business expenses, which are subsequently distributed according to revenue for production and trade separately;
• In the “Sales Expenses” account, trading costs are formed.

At the second stage, an analysis of general business expenses is compiled and the results are summed up.

On the third, it is necessary to sum up the revenue received as a result of the operation of the mill, trade and auxiliary production, i.e. we find the total revenue from the activities of the entire enterprise.

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

Write-off liquidated fixed assets

The accounts for the cost of fixed assets (2130-2190) and the 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 a fixed asset are reflected in the debit of account 9590 “Other non-operating expenses” in correspondence with the accounts “Other short-term liabilities”, “Accounts payable”, etc., for example:

3. The cost of materials received from liquidation is debited to account 1700 “Auxiliary materials” in correspondence with account 9590 “Other non-operating expenses”

Write-off of costsold fixed assetsis done as follows:

1. Revenue from the sale of fixed assets is reflected in the debit of account 1100 “Cash on hand”, 1200 “Cash in bank”, 1590 “Other accounts receivable” in correspondence with account 9190 “Other non-operating income” and account 3430 “VAT payable”:

2. Accounts for recording 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 during the sale of a fixed asset (delivery to the buyer, dismantling, etc.) are reflected in the debit of account 9590 “Other non-operating expenses” in correspondence with the accounts “Other short-term liabilities”, “Accounts payable”, etc.

4. If profit arises as a result of disposal, it is reflected in account 9190 “Other non-operating income”; if a loss arises as a result of disposal, it is reflected in account 9590 “Other non-operating expenses”

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

Dt 1100 “Cash in hand” or 1200 “Cash in bank”

D-t 1590 “Other receivables”

Dt 2193-2199 “Accumulated depreciation”

Dt 9590 “Other non-operating expenses” (if the result of disposal is a loss)

Kit 3430 “VAT payable”

Kit 2110-2190 “Fixed assets”

Kit 9190 “Other non-operating income” (if the result of disposal is profit)

The asset is considered liquidated and written off from the balance sheet in the reporting period in which fixed assets are physically liquidated or declared unfit for further use and can be sold at the price of scrap and other waste. The residual value and costs of liquidation of assets are reflected in the financial statements as losses from the liquidation of fixed assets. The cost of possible sale of materials received from liquidation is taken into accountlike other materials.

In accordance with IFRS, expenses of an organization 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 decision of participants (owners of property).

Costs associated with capital and financial investments and non-production costs are not considered expenses of the organization. 11 .

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

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

Operating expenses,

Non-operating expenses,

Extraordinary expenses. 12

Other expenses are not included in production cost accounts. Ultimately, they are reflected in the accounts “Other income and expenses” and “Profits and losses” (for more details, see the chapter “Accounting for profits and losses”).

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

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

In organizations whose subject of activity is the provision for a fee 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 these types of activities. If these types of activities are not the subject of the organization’s activities, then the costs of carrying out these types of activities are classified as operating expenses.

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).

Their classification is of great importance for the correct organization of cost accounting. Expenses for ordinary activities are grouped according to the place of their occurrence, 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, relation to production volume, composition production cost and efficiency.

According to the place of origin, expenses are grouped by production, workshop, site and other structural divisions of the organization. This grouping of costs is necessary for organizing management accounting and determining the production cost of products.

Expenses are grouped by type of product (work, service) to calculate their cost.

By type of expense, costs are grouped by cost elements and costing items.

In accordance with IFRS (clause 8), an organization’s expenses for ordinary activities are grouped into the following elements:

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

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

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

It should be noted that when accounting for expenses by their elements, expenses are not distinguished between finished products (works, services) and work in progress.

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, which are considered less liquid assets compared to cash and receivables. Inventories in BEKPR LLC are accounted for in active accounts of group 1600 in accordance with IFRS 2 “Inventories” with subsequent disclosures in the accounts:

1610 products 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 transition of accounting to the 2002 chart of accounts, are classified as biological assets and are accounted for as part of non-current assets.

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

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

Table 2.1

Primary documents for inventory accounting

Forms	Form name	Directions for use
M - 7	Certificate of acceptance of materials	It is used to formalize the acceptance of material assets that have a quantitative and qualitative discrepancy, as well as a discrepancy in assortment with these accompanying documents from the supplier; is also compiled when accepting materials received without documents; is a legal basis for filing a claim with the supplier or sender. The act is drawn up in two copies by members of the selection committee with the obligatory participation of the financially responsible person and a representative of the sender (supplier) or a representative of a disinterested organization.
M - 11	Request-invoice	It is used to account for the movement of material assets within an organization between structural divisions or financially responsible persons. The invoice in two copies is drawn up by the financially responsible person of the structural unit, the one giving the warehouse the basis for writing off the valuables, and the second one - the receiving warehouse for the receipt of the valuables. The same invoices document operations for the delivery of unspent materials from production to a warehouse or storeroom, if they were previously received upon request, as well as the delivery of waste and defects. The invoice is signed by financially responsible persons, respectively, of the deliverer and is obtained and submitted to the accounting department to record the movement of materials.
M - 15	Invoice for issue of materials to the side	It is used to account for the supply of material assets to the farms of one’s organization located outside its territory, or by parties to organizations on the basis of contracts and other documents. The invoice is issued by the employee of the structural unit in two copies on the basis of contracts, orders and other relevant documents and the presentation by the recipient of a power of attorney to receive valuables, filled out in the prescribed manner. The first copy is transferred to the warehouse as a basis for the release of materials, the second copy is transferred to the recipient of materials.
M - 17	Material accounting card	It is used to record the movement of materials in the warehouse for each grade, type and size; filled in for each item number of the material and maintained by the financially responsible person (storekeeper, warehouse manager). Entries in the card are made on the basis of primary receipt and expenditure documents on the day of the transaction.

The movement of goods and materials is recorded using a continuous system, i.e. income and expenses are recorded directly in inventory accounts.

The release of inventory into production and sales is assessed using the weighted average cost method.

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

On account 1630 in LLC "BEKPR" records are kept of agricultural expenses for cultivating agricultural land and growing beets, corn, alfalfa, wheat, reflecting 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 supplies raw materials for the production of sausages.

BEKPR LLC 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.

Processing costs include costs directly associated with units produced:

Direct costs of labor and materials,

Fixed production overheads

Variable manufacturing overhead,

Other expenses.

Costs directly related to the production of finished products are:

• Labor costs and social insurance contributions for workers employed in primary production
• Allocation of fixed and variable manufacturing overheads.

The fixed production overhead costs of BEKPR LLC include:

Depreciation of production equipment,

Equipment operating costs,

Labor costs and social insurance contributions for management staff and workers in auxiliary production,

Expenses for utility and communication services.

The company includes the wages of technological workers as variable production overhead costs.

Production costs 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 “Salaries” 3520 200.00

Credit account “Social insurance contributions” 3530 34.50

Credit account “Basic materials” 1620 308.46

Credit to the "Overhead" account 1639 1000.00

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

Debit 1640 “Finished products” 2612.1 thousand soms

Loan 1630 “Work in progress” 2612, 1 thousand soms

There is no balance in the work in progress account at the end of the year.

Analytical accounting for account 1640 “Finished products” is carried out by storage locations and individual types of finished products.

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

Debit 7100 “Cost of goods sold” 296956.1 thousand soms

Loan 1640 “Finished products” 296956.1 thousand soms

Periodically, and necessarily as of December 31, BEKPR LLC carries out an inventory of inventory balances, which is documented with inventory and matching sheets and a report on the results of the inventory.

In the production of crop products, the main weight is occupied by the production of wheat and alfalfa. This is due to the presence on 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.

BEKPR LLC produces about 35 types of bakery products: “Borodinsky”, “Rye”, “Krestyansky”, loaves, buns with jam, cheesecakes, gingerbreads, etc. And from sausage products there are about 30 types of sausage, liverwurst, raw smoked pork ribs, etc. Since 2013, the company has launched a dairy plant, produces milk of various fat contents, kefir, cream, sour cream and also sells it in various stores in Bishkek.

2.3. Ways to improve the efficiency of an enterprise

In the course of a study based on the balance sheet and profit and loss statement of the property and financial condition of LLC "BEKPR" for 2011 -2013, in the first and third questions of the third chapter of the course work, an analysis of the dynamics and structure of the company's assets and the sources of their formation was carried out, special attention was paid to analysis of the structure of current assets. We also analyzed assets by the degree of liquidity and liabilities by the urgency of repayment of obligations. An assessment of the company's solvency was carried out based on the enterprise's liquidity indicators. Indicators of the financial stability of the enterprise were calculated based on an analysis of the ratio of equity and borrowed capital. In addition, the profitability indicators of BEKPR LLC for 2011 and 2013 were considered. The analysis data indicates that the company operates profitably, although in 2013 there was a decrease in sales volumes and an increase in the cost of products sold, and, as a consequence, a decrease in all profitability indicators.

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

Profitable activity for the period under study;

Increasing production capacity (fixed assets and biological assets);

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

No 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 receipts in 2013 compared to 2012;

Decrease in revenue from product sales during the same period;

Increase in cost of goods sold;

Increase in debt on accounts payable and payment of dividends;

Low level of contributed capital of the founders;

Decrease in profitability and cost recovery indicators;

Decrease in liquidity indicators, and hence the solvency of the company;

Increase in accounts receivable from customers;

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, we can recommend:

Strengthen the work of staff in terms of collecting accounts receivable from accounts receivable;

Increase the share of the contributed capital of the founders in the liabilities side of the balance sheet;

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

Distribute profits to pay dividends on a more regular basis and not in full;

Direct efforts to increase sales income (revenue);

Conduct an analysis of the cost of goods sold and operating costs in order to reduce them;

Find new markets for food products, which is especially important now the time of entry of the Kyrgyz Republic into the Customs Union and the EAEU.

Conclusion

The issues considered in the work allow us to formulate a number of general conclusions and provisions.

The main generalizations include the following conclusions:

1. The procedure for maintaining 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 accounting regulations. But the most important and necessary for any type of activity is the Chart of Accounts and Instructions for its use, because on their basis, the organization approves a working chart of accounts containing a complete list of synthetic and analytical accounts necessary for a given enterprise.

2. Overhead costs are generated in connection with the organization, maintenance of production, sales of products and management. Costs are divided into manufacturing overhead, which includes the costs of organizing, maintaining and managing production, and general overhead costs incurred by management functions. The amount of these expenses 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 level of control; by the method of inclusion of the cost center in the cost price; by the method of reflecting costs in management accounting; in the cost accounting system “standard-costing”; depending on the influence of the volume of activity (direct costing cost accounting system); within the framework of applying the functional cost accounting method (ABC method); depending on the method of writing off costs in accounting; depending on the chosen management decision option; depending on the stages of inclusion in the cost of production.

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

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

The account “General business expenses” is considered the most important, because it is a collection and distribution operating account. It summarizes information on expenses for management needs not directly related to the production process (repair costs, rent).

For all businesses, the distribution of overhead costs is very important, because... with the help of distribution, it is possible to assess the performance efficiency of a department for a certain period; distribution is also used to calculate and analyze the profitability of products or customers, etc.

Cost allocation allocation of costs for specific purposes. Thus, management accounting of overhead costs is necessary for effective cost management, determining the areas of responsibility of managers, solving problems with identifying the most accurate indicators of the cost of manufactured products, if the need arises. Analysis of these costs allows you to find out which costs are determined by which decisions, what can be done in relation to them in the future, and also solve a number of issues: choosing cost-effective orders, planning future areas of activity, distributing and minimizing costs, drawing up estimates and analyzing deviations.

List of used literature:

1. Law of the Kyrgyz Republic “On Accounting” Bishkek. 04/29/2002, No. 76
2. Tax Code of the Kyrgyz Republic. Bishkek. 17.10. 2008 No. 230 (with amendments and additions)
3. International financial reporting standards. Bishkek 2001.
4. Chart of accounts for accounting financial and economic activities of entities and methodological recommendations for its application. Bishkek, 2002
5. Regulations “On document flow in accounting” of the Kyrgyz Republic. - B., 2002
6. Regulations on the organization of accounting in budgetary institutions (approved by Decree of the Government of the Kyrgyz Republic dated May 16, 2011 No. 224)
7. Methodological recommendations for the transition to accounting in accordance with the requirements of IFRS 2011.
8. Regulatory and methodological materials on accounting and reporting issues in the Kyrgyz Republic. Bishkek: Ministry of Finance, 1997 - 2003.
9. Management Accounting - Associate Professor Suranaev T.J. for BUAA; KRSU Bishkek, 2008
10. Israilov I.M. Financial accounting.-B., 2012
11. Sulaymanova U.S. Accounting policy for assets. B.: 2010 -172 pages. (textbook) authors: Sulaymanova U.S. and etc.
12. Textbook on Financial Accounting 1. PBA. Bishkek, 2003 G
13. Tutorial : Accounting financial reporting - Associate Professor Zenina E.V. Bishkek, 200 8g
14. Financial Accounting Tutorial Osmonova A. A Bishkek, 2003
15. Financial accounting 1 Textbook. BPEA, Chamber of Accountants and Auditors of the Kyrgyz Republic. Bishkek 2003 G . - 360s.
16. Financial Accounting 1: Study Guide. - B., 2008
17. Financial management. Textbook. Pragma Corporation
18. Sheremet A.D., Saifulin« Methodology of financial analysis" - M, 2003

1 Baysalova Zh.M Financial reporting. - B., 2004 С. 121.

2 Bezrukikh P.S. “Fundamentals of Accounting” Bezrukikh P.S. Moscow 2004. -P.342

3 Berstein L.A. Analysis of financial statements: practice and interpretation: Transl. from English / Scientific Ed. transfer of corresponding member I.I. Eliseeva. Ch. series editor prof. Y.V.Sokolov. M.: Finance and Statistics, 1996. -624 pp.: ill. (Accounting and Auditing Series)

4 Brykova N.V. Accounting in industry. - M., 2006 С. 63.

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

6 Needles B. et al. Principles of accounting / B. Needles, H. Anderson, D. Caldwell: Trans. from English / Ed. I'M IN. Sokolova. 2nd ed., stereotype. M.: Finance and Statistics, 1997. 496 p.: ill.- (Series on accounting and auditing). С. 124.

7 Textbook on Financial Accounting 1. PBA. Bishkek, 2003. С. 125.

8 Financial accounting 1 Textbook. BPEA, 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. С. 1122.

10 Baysalova Zh.M Financial reporting. - B., 2004. P. 127.

11 Baysalova Zh.M Financial reporting. - B., 2004 С. 120.

12 Accounting / Practical. accounting manual accounting, finance and taxation: Engineering and Consulting Company "DeKA", 2001 С. 74-75.

13 Zhukov V.N. Accounting for distribution costs: Textbook. M.: Finance and Statistics, 2002. С. 47.

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I. Brief description of the enterprise. 4

1.1 Historical background. 4

1.2 Structure of management, production and accounting apparatus of Tsarev Brewery OJSC. 6

1.3 Analysis of economic indicators of the work of OJSC Tsarev Brewery 9

1.4 Accounting policies. 10

2. Features of calculation and control of overhead costs. 14

2.1 Concept and classification of overhead costs. 14

2.2 Documentation, synthetic and analytical accounting of overhead costs. 17

2.3 Distribution of general and general production expenses 22

3. Organization of accounting for overhead costs using the example of OJSC Tsarev Brewery. 27

Conclusion. 31

References.. 33

Applications………………………………………………………………………………...34

Introduction

Overhead costs arise in connection with the organization, maintenance and management of production. They consist of general production and general business expenses.

One of the most important tasks facing the management of the enterprise is to reduce the cost of manufactured products; the development of ways to reduce costs and increase efficiency should occur at all stages of the production process. Of great importance in finding ways to reduce production costs is the identification of costs not directly related to the production process, and, first of all, the reduction of these types of costs. These expenses include the costs of organizing and managing production. Their share in the cost price is very significant.

The cost of production maintenance and management is about 10-12% of the cost and refers to semi-fixed costs. Consequently, their increase leads to an increase in costs, and this, in turn, affects the amount of profit. Therefore, in our opinion, the topic under consideration is relevant.

General managers of Western firms find that overhead costs are more difficult to control than all other costs, since these costs include many different costing items with different characteristics of change dynamics. Some overhead costs, such as depreciation of fixed assets, depend on production capacity. These costs remain relatively constant regardless of changes in sales or production volumes. Discretionary expenses change only based on decisions made by management.

Another difficulty is that not all overhead costs related to production or distribution occur simultaneously with the production or distribution process. Some overhead costs are incurred much earlier than changes in production or distribution. Other overhead costs come at a much later time, after the mentioned changes have long passed.

. Brief description of the enterprise

1.1 Historical background

The construction of the plant building on the bank of Tsarev, where the plant territory is currently located, was completed in 1891. The plant's productivity at that time was 40 thousand decaliters. per year, i.e. 40 thousand buckets per year. In 1918, the brewery was nationalized and in the same year, due to a shortage of bread in the country, it was mothballed. Only in 1926, by decision of the Gubsovnarkhoz, the plant, called "Pobeda", began to produce products again. From 1926 to 1930 its capacity increased 8 times and was increased to 310 thousand decaliters per year. Since 1930, there has been a gradual re-equipment of the enterprise. Wooden fermentation tanks were partially replaced with iron ones, and the first ammonia compressor with a refrigeration capacity of 200 thousand dal was installed. By 1940, the plant's capacity increased to 860 thousand decaliters. During the Great Patriotic War, beer production decreased again. Immediately after the war, work began to increase the plant's capacity. Equipment is being replaced. In 1952, the brewhouse was reconstructed - a German four-vessel, three-ton brewhouse, a six-roll malt crusher and a polishing machine were installed. An isobarometric automatic machine for filling beer into barrels is installed in the beer bottling shop. And in 1955, a Czechoslovakian automatic line of the “NAMA-INVEST” type with a capacity of 6000 bottles/hour was installed in the bottling shop instead of manual washing and filling capping machines. In 1959, a second automatic bottling line of domestic production was installed. In 1962, the malting shop was reconstructed. The current malthouse was replaced with a box malthouse, and a German Topf type malt dryer was put into operation.

In 1963, the brewery and the soft drink plant merged into one enterprise and the plant became known as “Pivkombinat”.

The soft drink plant, which was moved to a newly built building on the territory of the brewery, was founded in 1932 in the building of a former carpentry and furniture factory on the street. Khalturina. From 1967 to 1974, the plant was reconstructed in order to increase the capacity of malting and brewing production. A new beer bottling shop and a Topf malt dryer were built, and the fermentation and lager departments were expanded. The reconstruction project included the construction of a new brewhouse. However, due to a lack of capital investment, the new brewing unit was located in the old building. Between 1967 and 1974. In the fermentation and camp sections, open tanks were replaced with closed-type fermentation tanks with a capacity of 5.5 tons. There are 37 aluminum tanks installed in the fermentation department, and 28 steel and 97 aluminum tanks in the camp basement. During the same period, 3 turners of the “mobile bed” type were put into operation in the malting shop. In 1983, an automatic bottling line with a capacity of 12 thousand bottles/hour was installed in the beer bottling shop. In 1988, a Czech beverage bottling line with a capacity of 24 thousand bottles/hour was installed in the non-alcoholic workshop, and a water treatment system for this workshop (Bulgaria) was launched in 1991.

Currently, the plant has 3 main production facilities:

Malt - capacity 5056 tons;

Beer - capacity in terms of Zhigulevskoe beer - 2373 thousand dal., taking into account the assortment 2050 thousand dal., bottling beer - 1667 thousand dal.

Soft drinks - capacity 930 thousand dal.

1.2 Structure of management, production and accounting apparatus of Tsarev Brewery OJSC

The main internal document defining the activities of the enterprise is its charter, registered by decree of the Head of the Administration of the Sovetsky District of Astrakhan on March 11, 1993. In accordance with it, the main activities are: production of beer, soft drinks, bottling of mineral water, production of malt for own needs and commercial malt, sale of beer, soft drinks and mineral water in its own trading pavilions, outbound sales of bulk beer on brewing trucks. The authorized capital of the enterprise consists of 30,978 ordinary registered shares. The management structure at the Tsarev brewery is presented in Appendix 1.

The main executive body of management is the general meeting of shareholders, which elects the board of directors. He, in turn, selects the general director. The chief engineer, chief brewer, chief accountant, two deputies and several department heads are directly subordinate to the general director.

The Deputy General Director for Supply and Sales reports to divisions directly related to the sales process: supply department, barley warehouse, raw materials warehouse, auxiliary materials, commodity area.

The chief engineer is subordinate to the divisions serving the production departments: non-alcoholic shop, compress shop, control system.

The chief engineer reports to the chief brewer, who is subordinate to the malting shop, brewing shop, fermentation and lager department, and beer bottling shop.

The accounting department employees of the enterprise report to the chief accountant.

Production at the plant is presented as follows: in the fall, from the regions of the Central Black Earth Region of Russia, it arrives at the warehouse of the Kutum station enterprise. barley. From there, it is delivered to the plant by its own vehicles.

Raw materials are dried, soaked and sprouted material - malt passes these technological stages in the keying, malt-vegetable and malt-drying shops.

Then it is transported to the brewhouse, where it is crushed, filled with water, and into the resulting thin layer - wort hops are added and sent to the fermentation and lager department. All this ferments in brewer’s yeast, from which the resulting solution is later purified. Beer is filtered and supplied to the beer bottling shop.

There are 5 warehouses on the territory of the enterprise: a warehouse for a non-alcoholic workshop, a warehouse for barley, hops, a material warehouse and a warehouse for finished products.

The structure of the accounting apparatus refers to the composition and subordination of interconnected organizational units or accounting units performing various functions. The structure of the accounting department is presented in Diagram 1.

In the accounting department of an OJSC, a substantive division of labor is used, which is based on the principle of isolation of the work or operations performed, in which the entire operational cycle is carried out from beginning to end by one employee or a certain part of the apparatus.

The plant's accounting department includes: 1) leading payroll accountant; 2) based on materials; 3) financier-economist; 4) leading accountant; 5) tax accountant; 6) cashier.