Экономические науки/7.Учет и аудит

Yershayeva A.K., master

Karaganda economical university Kazpotrebsoyuz, Kazakhstan

FEATURES OF DISTRIBUTION OF OVERHEAD COSTS

IN KAZAKHSTAN

The costs, expenses, production cost are the most important economic categories. Their level largely determines the amount of profit and profitability of the enterprise, the efficiency of its business activities. Reduction and optimization of costs are one of the main ways to improve the economic performance of each enterprise.

The essence of production costs and the production costs are not identical to each other in the theoretical and practical, both at the level of social production, and in macroeconomics in domestic and foreign practice. From the standpoint of society production costs include the full amount of the cost of labor and materials, and are equal to the cost of the product. The costs of producing domestic enterprises consist of their own spending money and foreign companies costs include normative profit.

The concept of enterprise cost varies significantly depending on their destination. A clear separation of the costs of their role in the reproduction process is a defining moment in the theory and practice. In accordance with it at all levels of government is carried out cost-grouping, formed the production cost, funding sources are determined. To reproduce the grounds of the enterprise costs are divided into three types:

- The cost of production and sales of products that make up its cost. These are the current costs to be covered from the proceeds from sales of products by means of the circulation of working capital;

- The costs of the expansion and renewal of production. Typically, this large one-time investment of a capital nature for the new or upgraded products. They extend the applicable factors of production, increasing the authorized capital. The costs consist of capital investments in fixed assets, working capital growth standard, the cost of the formation of additional labor for the new production. These costs are specific sources of funding: a sinking fund, earnings, issuance of securities, loans, etc;

- The cost of socio-cultural, housing and other similar needs of the enterprise. They are not directly linked with production and are financed from special funds formed primarily of distributed profits.

Costs of production and sale of goods (works, services) are the costs of the enterprise, expressed in monetary terms and related to the use in the production of raw materials and supplies, spare parts, fuel, energy, labor, fixed assets, intangible assets and other costs of non-capital . They are included in production costs, the level of which determines the amount of profit, product profitability and capital, as well as other final figures of financial and economic activity of the enterprise.

The most general concept of production costs of firms in foreign textbooks is defined as the cost of input factors or economic resources. All costs accepted as an alternative (or imputed), which means that the cost of any resource chosen for the production, is equal to its value in the best mode of use. This is one of the most important principles of the market economy.

There are economic costs and accounting. Under the economic costs refers to all types of suppliers to firms pay for the resources used. They consist of two types: external (explicit or cash) and internal (implicit or implicit). External costs represent cash payments to suppliers of resources: raw material costs, materials, fuel, wages, depreciation, etc. This group of costs and accounting costs, the corresponding costs of our domestic enterprises. Domestic firms have an implicit costs, implicit. They reflect the use in the production of resources belonging to the company's owners: land, buildings, their personal labor, intangible assets, etc., for which the company is not formally pay. In summary, understanding the internal costs represent a return on their own additionally used resource (capital, land and labor within the normal interest or rent, as if the money were put into the pot, the land is leased, etc.) and normal profit ( it includes salaries and remuneration of the entrepreneur, as if he was employed). Entrepreneurs are actually these costs, but not explicitly, not in cash, which allows to include them in economic costs.

The concept of "economic" costs is generally accepted; Accounting - shall be calculated in practice when calculating the actual amount of costs, taxable profit etc.

Costs of production and sale of goods (works, services) are classified by a number of features:

- On the role in the production process, they are divided into main and overhead. The main costs directly generated by the product form, make it a physical basis:

- Raw materials, semi-finished goods, wages, etc. Overhead costs associated with the maintenance of the production process: the maintenance of equipment, shops and offsite personnel, etc .;

- By the process of switching costs are divided into direct and indirect in the production cost. Direct costs are directly attributable to the cost per unit of each kind of product: raw materials, energy, technology, wages machinists and other indirect costs are allocated to individual product groups in proportion to the selected base;.

- Depending on the cost of the change in the output volume of products are divided into fixed and variable. The value of the fixed costs remain the same when you change the volume of production (rents, depreciation, maintenance of buildings, etc.). Variable costs, on the contrary, increases or decreases under the influence of the dynamics of output. This group of costs is widely used in the theory of microeconomics abroad;

- According to the methods of accounting and cost categories are divided into simple (raw materials, wages, depreciation, energy, etc.) and complex, ie, gather in groups or by functional role in the production process (low value items), or at the place of the costs (expenses guild, works general expenses, etc.);

- On terms used in the production of different everyday, or ongoing costs and non-recurring, one-off costs, carried out at least once a month.

Cost of products (works, services) is the valuation used in the production of goods (works, services) of natural resources, raw materials, fuel, energy, fixed assets, labor and other costs of its production and sales. The cost price reflects the value of current costs, with industrial, non-capital, providing a process of simple reproduction in the enterprise. Cost of an economic form of reparation consumed factors of production [1, page 57].

Costs cost of forming, on the economic content grouped into the following elements: material costs, labor costs, social contributions, depreciation of fixed assets and other expenses. Their structure is influenced by various factors: the nature of the products and consumable material and raw material resources, technological level of production, forms of organization and placement conditions of supply and marketing of products, etc. Depending on the dominant share of the costs of individual elements of the following types of industries and production: consumption of materials, labor-intensive, capital-intensive, fuel and energy-intensive and mixed. The cost structure is not constant, it is dynamic.

Material costs in all sectors of the economy (except mining) occupy the major share of the cost of production. They include:. Raw materials, basic materials, purchased semi-finished products, fuel, energy and other raw materials, and include the cost of acquired from the resources that are included in the product and constitute a basis or are a necessary component. Purchased materials and semi-finished products, purchased from the outside, exposed to further additional processing or assembly-mounting. The auxiliary materials are added to the basic order to change their appearance or other properties, and are also used in the production maintenance (lubrication, cleaning cloths, dyes, packaging and so forth.). The fuel (solid, liquid, gaseous) and all types of energy (electric, heat, compressed air, cold, etc..), Purchased from the outside, stand out particularly as a part of material costs due to their important economic value. The material costs are also included in the packaging costs, packaging materials, tools, spare parts and others.

Evaluation of material resources on which they are included in the cost of production is determined on the basis of the purchase price (excluding VAT), all bonuses and commissions provisioning, mediation and foreign trade organizations, the cost of the commodity exchange services, customs duties and transportation fees third parties. Because the cost of material resources excludes the cost of returnable waste - raw material residues, materials, semi-finished products, coolants, resulting in the production process that lose (in whole or in part) the consumer as inputs and can not be used for its intended purpose. Return waste are estimated according to their possible use.

Labour costs represent part of the cost of production of necessary human labor. They include basic wages of production personnel, and not in the staff of employees related to the core business. Compensation includes: wages accruing on piece rates, tariff rates and salaries in accordance with the wage systems adopted by the company; the cost of production, issued by way of payment in kind; allowances and additional payments; awards for production results; payment of ordinary and additional leave; the cost of services provided free of charge; lump-sum compensation for years of service; allowance for work at the Semipalatinsk test site and regional factors and other expenses. Not included in the cost of employee benefits businesses not directly related to wages, which have their source in special funds, trust receipts, funds of trade union organizations, and others. (Financial assistance, bonuses and lump sum payments to veterans of labor, payment vouchers for treatment and rest, dividends paid for the shares, the compensation due to the increase in prices, travel costs to and from work, and so on.).

Social contributions are a form of redistribution of the national income to finance social needs. Accrued funds are allocated to non-budgetary funds and used for the purposes provided by law. Rates of insurance premiums annually approved in the law adopted by the Majilis of the Parliament and approved by the Senate of the Parliament. This cost group currently includes the following types of payments.

Depreciation of fixed assets at their full recovery is included in the cost of production in the amounts determined on the basis of the book value of assets and depreciation of existing norms. Depreciation is calculated as a fixed asset on its own and leased (unless otherwise stipulated by the lease agreement), as well as the cost of premises provided free catering and health care enterprise labor collectives.

The structure includes a variety of other costs and many costs; taxes and fees, contributions to special funds, payments on obligatory insurance of property and for emissions of pollutants into the environment, payment of interest for the loan, the wear amount of intangible assets, travel and entertainment expenses, payment of works on certification of products, rewards for invention and rationalization and etc.

Typical costs for group accounting articles is as follows:

1) raw materials, basic materials, semi-finished products, component parts (excluding returnable waste);

2) supporting material;

3) fuel for technological purposes;

4) energy for technological purposes;

5) the basic wages of production workers;

6) additional wages of production workers;

7) social contributions on wages of production workers;

8) expenses for maintenance and operation of equipment;

9) costs of preparing and development of new production;

10) shop expenses;

Total shop cost

11) overhead costs;

12) loss from marriage:

Total production cost of commodity products

13) Non-manufacturing costs;

Total full cost of

In accordance with control and monitoring tasks of keeping the cost of production is carried out in several directions[2, page 122].

1. According to a cost: the centers of responsibility (production, workshops, sites, etc.) and the nature of production (main and auxiliary production).

In order to control the composition of the costs and the place in which they occurred to know not only what is spent in the production process, but also for what purposes these costs are incurred, ie, take into account the costs of the board, in relation to the process. With these features costs are grouped by type of production.

Primary production - production in which the direct process of production, the work and services are intended for implementation.

By supporting industries understand the production, which are not directly related to the primary production of goods, and serve him with their products, works and services. For example, compressor, parokotelnaya provide all the services the different kinds of energy, steam, water and other auxiliary production - tools, spare parts to repair equipment or make repairs or provide transportation services and others.

2. For economic elements (elements cost items), - the costs are divided into elemental and complex. Elemental costs are those that contain in their composition of one type of expenditure (wages of all workers, the cost of consumed material assets, accumulated depreciation of fixed assets, intangible assets). This detail gives the opportunity to plan the process of Storing valuables, analyze staffing, to adjust tariff rates and salaries, etc. Their monetary value is reflected in the financial statements.

The costs included in the cost of production, form the production cost of the gross output. If you take into account the production cost (add or subtract) changes in the balance of work in progress, we define the cost of production of marketable products. After adding thereto a group of off costs associated with the sale of products and the allocation of funds to higher-level organizations receive the full cost of commodity products.

On planning methods of accounting and distribution expenses are classified by economic elements - the estimated cost and the cut at the place of their implementation - grouping accounting articles. This classification is of great theoretical and practical importance, since in accordance with its requirements of organized economic activity of the enterprise.

Classification of expenses on economic elements has an enterprise essential. Estimated cost incision to determine the total amount consumed by the enterprise different types of resources. Based on estimates made linking sections of production and financial plan of the enterprise: for logistics, for labor is determined by the need for working capital, etc. According to estimates of the costs estimated cost of gross output, changing the balance of work in progress, write-offs on non-production bills of costs.

However, based on the estimated cut can not determine the specific direction and place the cost of using (the manufacturing process, plant maintenance, plant management and maintenance, etc.), which does not allow to analyze the efficiency of costs, open the reserves to reduce them. And most importantly, on the basis of elements of the estimate is not possible to determine the unit cost of production in the context of the entire range, as well as each name, group type. These problems are solved according to the classification of items costing.

Classification items costing to determine the unit cost of production, to distribute the costs of assortment groups, set the level of expenditure for each type of work, production units, the control unit, to reveal reserves of cost reduction. Calculation principle of cost categories is the basis of building a chart of accounts in all sectors of the economy in our country and abroad. Reporting also compiled and analyzed mainly by accounting articles.

When grouping by object costing combined in the directions of their use, in the place of occurrence: directly in the manufacturing process of products to maintain production, enterprise management, etc.

Processes of strengthening of market orientation predetermine emergence of a number of the problems connected with development of effective techniques on improvement of calculation business. Thus one of important tasks of the theory and practice of domestic accounting still remains a problem of the account and distribution of overhead costs now.

Overhead costs are expenses on service and production management and the enterprise: general production and general economy, caused by preparation and, the organization, service and management. Allocation of costs - a problem which emergence is inevitable almost for each organization, this direct reference of collected costs of a certain object and allocation of costs between various objects.

Main objectives of allocation of costs are: providing with information for adoption of administrative decisions, calculation of profit and assets of the organization when providing financial reports to external contractors, motivation of managers and employees of the organization, need of justification of expenses or calculation of compensations. Various ways of allocation of costs serve various purposes of the organization.

The majority of decisions concerning allocation of costs are accepted taking into account relationships of cause and effect and criterion of benefit. Exist as well other criteria which treat justice, possibility of execution of expenses.

In management accounting there are two main approaches to calculation of prime cost and distribution of overhead costs: traditional system of distribution of overhead costs and distribution of overhead costs on functions (ABC). The traditional method is a method of distribution of indirect expenses at which all expenses are distributed by total amount on prime cost unit in proportion to the level of business characterizing the considered type of business or production. As a level of business it is possible to use production volume in natural or value terms, man-hours or machine-hours, a consumption of the main materials, total amount of a factor cost.

The basic principle of calculation of prime cost is cost sharing on direct and indirect (consignment notes) and reference of both types of costs of finished goods.

As a rule, in practice with distribution of a factor cost of problems doesn't arise as they can be directly carried on prime cost of concrete object of expenses.

With indirect expenses it is more difficult. Traditionally they are transferred to objects of expenses in proportion to the size of labor expenses, machine time, output, sales etc. If the share of indirect expenses in prime cost of products (works, services) is small, application of traditional approach to prime cost justifies itself in view of its simplicity and an insignificant error of result. However in modern conditions at improvement of the production technology, decrease in its labor input and material capacity, and also automation of processes the share of direct expenses decreases, and a share of indirect expenses (on the general management, marketing, financial management, human resource management, etc.) increases. Moreover, in some branches of economy (for example, in trade, the bank sphere, insurance) a share of direct costs in the total amount of expenses traditionally small therefore the standard approaches to distribution of indirect expenses can lead to adoption of incorrect administrative decisions. The products consuming least of all a resource in proportion to which indirect expenses are distributed (for example work) at calculations will seem more profitable in comparison with the products consuming more than resources (for example, with high labor input). Use of a technique of AVS for distribution of laid on expenses allows to avoid these mistakes [3, page 198].

The ABC method is the method of distribution of indirect expenses based on allocation of costs by types of business or on units of production is proportional to sizes of carriers of these expenses.

To apply an ABC method, the organization at first has to give a quantitative assessment to all the overhead costs and define and estimate the main reasons conducting to emergence of expenses. There are no standard rules concerning what have to be these reasons, in each organization they different. The reasons have to be not necessarily concentrated in some one center of the account, they can belong and to the different centers of the account. It is possible to give processing of orders of consumers, supply, quality control of production, preparatory operations, storage of raw materials and materials as an example of operations (the centers of the account) consuming resources in a warehouse, etc.

It has advantage before traditional system of accounting of prime cost as the way of distribution of overhead costs in it is defined by the factors influencing the size of these expenses.

To advantages of AVS of a method following:

- the first and main advantage is a simplicity of use. The method is simpler, the it more reliable is an axiom. Because of simplicity it is easy to adapt it for various situations. Training also doesn't demand a lot of time.

- transparency is an advantage follows from simplicity. The more simply, the more reliably, but also more clearly. Any analysis stage can be tracked and if it is necessary, to correct. Interpretation of calculations doesn't cause problems. Difficult statistical methods have no such advantage.

- one more important advantage is almost full universality. By means of the AVS-method it is possible to analyze though commodity turnover, though money, though a grain yield though anything that it is possible to divide into the making elements. Before AVS-method all are equal.

- automation - when there were no computers, all calculations became on paper and in mind, at best on the calculator. Therefore carrying out any analysis was interfaced to labor input of calculations. Now this problem lost the relevance. For the AVS-method it at all not a problem as the algorithm is rather strict. Calculation in Excel can be made by means of several pressing of keys. There is also a set of specialized programs, macroes and appendices which reduce number of pressing to one. Well, ABC analysis becomes quickly now. To multiply and divide a column not obligatory to be able, about slide rules and scores, at last, it is possible to forget.

- optimization of resources is actually purpose of a method. Successful use of the AVS-method allows to reduce and release a huge number temporary and a manpower.

The AVS-method can be used as the effective instrument of pooperatsionny calculation of expenses of trade and manufacturing enterprises. Its application provides more exact description of expenses and displays a financial condition of the organization better, than traditional methods of accounting, bringing the most objective and realistic results. It allows the organization to develop more exact and reasonable decisions. Expenses of the enterprise become more operated, there is an opportunity to find the most effective levers of their decrease.

The Japanese system of calculation of "Just-in-Time" (JIT) "precisely in time" which includes three main approaches deserves attention for the Kazakhstan companies also: management "precisely in time"; organization of business process "precisely in time"; calculation "precisely in time". "precisely in time" the principle of liquidation of unnecessary information for management is the cornerstone of system. Is that during production details, necessary for assembly, appear on the production line precisely while it is necessary, and in strictly necessary quantity. The main characteristics – to have only necessary stocks, when necessary; to improve quality to a state "zero defects"; to reduce cycle duration by decrease in time of equipment, the extent of turn and size of production party; gradually to modify operations; and to carry out these kinds of activity with the minimum expenses.

Thus, the essence of system is reduced to refusal of production by large parties, and continuous and line subject production is in exchange created. The JIT system provides practical elimination of a work in progress, minimizing of volume of inventory holdings and implementation of production orders exactly in the planned time.

So, it is possible to carry the following to advantages of JIT system:

- reduction of the money necessary for stockpile management. The smaller volume of stocks allows to reduce quantity of the financial resources "frozen" in stocks;

- opportunity to use for other needs of the area, earlier taken away under stocks. The system Precisely reduces in time the volume of stocks of raw materials, stocks in production, and stocks of finished goods. As a result the considerable areas which are possible for using for other purposes can be released;

- reduction of volume of unrealized goods at demand reduction. The purpose of system Precisely in time is production of such quantity of production which is necessary for the consumer. Therefore if demand for production sharply decreases, in JIT system the quantity of unrealized goods will be minimum;

- reduction of volume of parties of products. It allows to react to change of requirements of the market quicker. At the expense of small parties in JIT system there is an opportunity quicker to enter changes on the basis of needs of clients;

- decrease in amount of defects that leads to reduction of marriage and costs of its correction. For effective work of system Precisely in time the amount of the defects revealed in production has to aspire to zero. That many efforts on work improvement of quality are made to achieve it.

It is recommended to apply JIT system in interrelation with the ABC method as the last as well as JIT, is based on use of non-financial measuring instruments. The ABC method is called still a method of management of overhead costs. Therefore, all function charts of the account and distribution of overhead costs on the ABC method can be introduced in JIT system. In our opinion, to the main problems of distribution of overhead costs at the Kazakhstan enterprises the greatest preference to use of traditional system of distribution of overhead costs is [4, page 306].

To the most actual problems of introduction of foreign systems of distribution of overhead costs, such as, systems of ABC and JIT in Kazakhstan belong:

1) costs of use of a method - at the large enterprises there can be a large number of various articles of expenses;

2) costs of introduction of ABC system can be considerable and can become a hindrance for the enterprise which just carried out large capital investment in the advanced production technology.

3) for an ABC method, as well as for other methods of allocation of costs, there is a problem a definition of carriers of expenses or suitable bases for absorption of the general production overhead costs units of cost.

4) low level of marketing of manufacturing execution system of JIT in Kazakhstan - the basic principle of JIT system is to make production, to perform works, services only when it need, and only that quantity which is required to customers.

Literature:

1. Ivashkevich V. B. "Accounting management accounting". М, 2003y.

2. Akchurina E.V., L.P. Glycyrrhiza "management accounting". 2004y.

3. Nazarova V. L., Fursov D. A., Fursov S. D. "Management accounting" Almaty 2010y.

4. Kerimov V. E. "Management accounting". М, 2003y.